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8932-17 Authorize three-year loan to Western Reserve Distillers
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8932-17 Authorize three-year loan to Western Reserve Distillers
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(5) Voluntary Insolvency -- If Borrower becomes insolvent, ceases to pay its debts as <br />they mature, voluntarily files a petition seeking reorganization of, or the <br />appointment of a receiver, trustee, or liquidator, for itself or a substantial <br />portion of its assets, with the purpose of effecting a plan or other arrangements <br />with creditors, is adjudicated bankrupt, or makes a voluntary assignment for the <br />benefit of creditors; <br />(6) Involuntary Insolvency -- If an involuntary petition is filed against Borrower <br />under any bankruptcy, insolvency, or similar law seeking the reorganization of, or <br />the appointment of any receiver, trustee, or liquidator, for Borrower or a <br />substantial part of its assets, or a writ or warrant of attachment or similar <br />process is issued against a substantial part of Borrower's assets, and such <br />petition is not dismissed, or such writ or warrant is not released or bonded, <br />within thirty (30) days after the filing or levy; and <br />(7) Judgments -- If final judgment is entered against Borrower for the payment of <br />money and such judgment is not fully covered by liability insurance and is in <br />excess of Ten Thousand Dollars ($10,000) and is not discharged or appealed with <br />execution of said judgment stayed pending appeal, or, if such judgment be <br />affirmed on appeal and not discharged within thirty (30) days. <br />Section 6.02 Remedies <br />If the Borrower defaults and fails to cure as set forth in Article VI of this Agreement, then <br />the City shall have the right to exercise concurrently or successively any one or more of the <br />following rights and remedies: <br />I. Wholly or partially terminate this Loan Agreement and the rights given to <br />the Borrower in it; <br />IL Temporarily or permanently withhold or reduce funds not yet paid to the <br />Borrower; <br />III. Recover funds previously paid to the Borrower; <br />IV. Disallow all or part of the cost of a noncompliant activity; <br />V. Wholly or partially suspend the Agreement; <br />VI. Exercise any and all additional rights the City may have in law or equity. <br />Termination pursuant to clause (1) above shall be effective five (5) days after the date <br />the City has given written notice to the Borrower of such termination. If City chooses any of the <br />Page 14 of 19 <br />
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