Legal Question in Real Estate Law in Arizona
What does the follow mean?
THE BANK may declare the secured obligations in arrears in any of the following cases:
b) If the PLEDGOR stops making on their due date any of the payments agreed upon to the principal or interest of any of the obligations owing, or stops paying the fees or expenses incurred by THE BANK.
c) If the PLEDGOR is declared bankrupt or is under insolvency proceedings or makes an assignment of assets to the benefit of their creditors.
d) If the PLEDGOR incurs in default or noncompliance, be it with respect to the principal obligations assumed by them, or the obligations stemming from this security agreement.
e) If attachment or embargo is requested on the assets of the PLEDGOR.
1 Answer from Attorneys
It says that the lender bank can declare that you are in default and "in arrears" in the following events; b. if you fail to make the required payments on time, c. if you file for bankruptcy protection or make an assignement for the benefit of creditors, d. if you fail to perform your other duties under the security agreement or e. if someone seeks to attach or prevent the transfer of your other assets. Just because you are in default or in arrears, does not mean that the bank has to foreclose nor does the bank waive its rights to collect or foreclose.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
