Indebtedness clause is a contractual clause that details the terms and obligations related to debts or financial liabilities of a party. Common in loan and financing agreements, it specifies the amount, timing, repayment terms, and covenants governing the debt, ensuring clarity and reducing risks or disputes.
Drafting Tip
Define terms related to any debts that are part of the contract, including repayment terms, interest rates, and consequences of default.
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