Isn`t it time for lenders and borrowers to consider including a “force majeure” clause or similar provision in credit agreements in order to deal with global pandemics such as Covid-19? Under South African law, force majeure grants a party (the “Relevant Party”) the facilitation of the occurrence of an unforeseeable circumstance that prevents the Party concerned from fulfilling its obligations to the other Party under the Treaty. The inclusion of a force majeure clause in a credit agreement should be carefully considered by a creditor and tailored to the specific requirements of the creditor. There must be a link (direct or indirect) between the occurrence of the force majeure event and the borrower`s inability to do so. What constitutes a default event (EOD) varies from contract to contract, but common OPDs (i) include non-payment; (ii) breach of insurance, guarantees or financial obligations (as set out above); (iii) cross-default of other essential contracts of a debtor or group enterprise (often broad enough to include all other financial debts due and payable as a result of default, regardless of the lending enterprise); (iv) insolvency and insolvency proceedings; (v) cessation of activity; and (vi) significant adverse changes (explained below). Any debtor may trigger one or more of these OPDs as a result of the economic impact of COVID-19, which would allow the lender to accelerate the debt owed to it and allow the lender to refuse to provide another loan or use these EODs as triggers for the execution of guarantees or guarantees. or the commencement of insolvency proceedings concerning the debtor(s). Borrowers should review their existing facility arrangements to ensure that they can continue to meet their current obligations and avoid default, including: frustration and illegality may also apply to the underlying transaction documents, even if it seems unlikely that a borrower will meet its own obligations under a facility agreement. Zepte could leave. The triggers that these Cayman Islands companies, whether as borrowers and/or as issuers of securities (combined debtors), will likely be taken into account in their furnishing or security agreements: The previous global financial crisis occurred in 2008/2009 as a result of the subprime mortgage crisis that originated in the United States when real estate prices began to fall in 2006. .

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