This office lease clause is an onerous approach to a default remedies clause. This clause is similar to those found in many New York City landlord office lease forms.
Iowa Onerous Approach to Default Remedy Clause
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FAQ
A Right to Cure Notice is produced the first time the account is delinquent to give the customer an opportunity to ?cure? the delinquency and avoid repossession of collateral by paying delinquent amounts by a specific 'cure' date.
Except as otherwise required or allowed under this Agreement, in the event of default by one Party in the per- formance of its obligations under this Agreement, written notice of such default shall be given to the defaulting Party by the non-defaulting Party.
Iowa Code 537.7102(3) ?Debt? means an actual or alleged obligation arising out of a consumer credit transaction, consumer rental purchase agreement, or a transaction which would have been a consumer credit transaction either if a finance charge was made, if the obligation was not payable installments, if a lease was ...
A consumer has a right to cure the default unless, in other than an insurance premium loan transaction, the creditor has given the consumer a proper notice of right to cure with respect to a prior default which occurred within three hundred sixty-five days of the present default, or the consumer has voluntarily ...
Iowa law requires a creditor to provide a debtor with a written notice of their right to cure a delinquent amount. This must happen before a lawsuit can be filed to collect a consumer debt. The notice must provide the debtor at least 20 days to pay the defaulted amount.
The notice must tell you that you are in default and that you have 30 days to cure the default. The Right to Cure Notice says that if you do not get caught up on your payments, ?cure your default,? the bank can begin foreclosure proceedings to take your house.
Cases such as this one from California, explain that to ?cure? a default, as the term is used in the Bankruptcy Code, means that ?the debtor must take care of the event triggering the default and return the parties to pre-default conditions.?
Option to cure is a contract principle that, where available, allows a party to a contract to have the opportunity to correct their performance to align with their obligations in the contract.