Opinion ID: 2979541
Heading Depth: 3
Heading Rank: 1

Heading: Loan Agreement

Text: The CFA-Six Ventures loan agreement contains the following pertinent provisions: 10.1 Exculpation. . . . Notwithstanding anything to the contrary in this Agreement or any of the Loan Documents . . . (B) Lender’s agreement not to pursue personal liability of Borrower as set forth above SHALL BECOME NULL AND VOID and shall be of no further force and effect, and the Debt shall be fully recourse to Borrower in the event that one or more of the following occurs (each, a Springing Recourse Event): . . . (3) the occurrence of any condition or event described in either Section 8.1(f) or Section 8.1(g) and, with respect to such condition or event described in Section 8.1(g), either Borrower, any Guarantor or any Person owning an interest (directly or indirectly) in Borrower or any Guarantor consents to, aids, solicits, supports, or otherwise cooperates or colludes to cause such condition or event or fails to contest such condition or event. District Court Doc. 15-1, at p. 64 (emphasis added). 8.1 Events of Default. An “Event of Default” shall exist with respect to the Loan if any of the following shall occur: . . . (f) Borrower or any Guarantor shall (i) make an assignment for the benefit of creditors, or (ii) shall generally not be paying its debts as they become due; (g) a receiver, liquidator or trustee shall be appointed for Borrower or a Guarantor; or Borrower or a Guarantor shall be adjudicated a[s] bankrupt or insolvent; or any petition for bankruptcy, reorganization or arrangement pursuant to federal bankruptcy law, or any similar federal or state law, shall -4- 111 Debt Acquisitions Holdings, LLC v. Six Ventures Ltd., et al. No. 09-4436 be filed by or against, consented to, or acquiesced in by, Borrower or Guarantor, as the case may be; or any proceeding for the dissolution or liquidation of Borrower or a Guarantor shall be instituted; provided, however, if such appointment, adjudication, petition or proceeding was involuntary and not consented to by Borrower or a Guarantor, as the case may be, only upon the same not being discharged, stayed or dismissed within 60 days[.] District Court Doc. 15-1, at p. 56 (emphasis added).