Drop Dead Provision

A term in a bankruptcy court order or Chapter 11 plan providing that the automatic stay is immediately modified upon the occurrence of a default by the debtor (such as failure of the debtor to make a payment required under the order or the bankruptcy plan) or other stated condition to allow a specified creditor or creditors to enforce their remedies against the debtor or their collateral or both.

See also Automatic Stay, Bankruptcy Plan, Cash Collateral Order.

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