default, if remedy is possible. Nonpayment is not the kind of default that can be
allowed to drift on, and therefore a grace period of more than 2 –3 business days
(to allow for any technical problems in transfer of the funds through the banking
system) is the normal maximum here. A reasonable period (say 30 days) should
be given for other defaults that can be remedied; for example, failure to fulfill an
undertaking to provide financial information.
Similarly, some materiality limitation may be reasonable for some of the events
of default: for example, a representation or warranty should have been misleading
in a material respect to make it an event of default. This is usually an issue of much
debate between Project Company and lenders. For example, ...