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Introduction

The parties can agree that the failure to comply with impact commitments results in a default under a loan agreement. The parties will need to define what constitutes the events of default. We have not included sample language, but the parties will also want to define the consequences of a default, which ordinarily include immediate repayment of the loan (loan acceleration).

See Sample term sheet: loan with impact-triggered default for an example of terms for an impact-triggered default.

Sample default language

Events of default under the Note shall include: (1) [. . .]; (n) an uncured breach of [specify violation of impact agreements that constitutes default].

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