Common use of Action on Subordinated Debt Clause in Contracts

Action on Subordinated Debt. The Manager will not commence any action or proceeding against the Loan Parties to recover all or any part of the Subordinated Obligations, or join with any creditor (unless the Lender shall so join) in bringing any proceeding against the Loan Parties under any bankruptcy, reorganization, readjustment of debt, arrangement of debt receivership, liquidation or insolvency law or statute of the federal or any state government, or take possession of, sell, or dispose of any collateral, or exercise or enforce any right or remedy available to the Manager with respect to any such collateral, unless and until the Senior Indebtedness has been paid in full.