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Remedy period

Remedy period

Dictionary

period given by the credit contract to avoid the potential Event of Default, after breach of the covenants or missed scheduled installment took place. Each credit contract should contain such stipulation that Borrower has additional period either to deliver payments from Installment schedule or to fix breached covenant (e.g. Solvency ratio may be improved via fresh Equity injection). For instance, a standard for delivering the payment is 10 business days under LMA.     

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