Common use of Allocation of Closed-End Collections Clause in Contracts

Allocation of Closed-End Collections. The Secured Parties, by entering into this Collateral Agency Agreement, acknowledge and agree that, notwithstanding that the obligations arising under the Warehouse Facilities and the Closed-End Exchange Notes are secured, pursuant to the Security Agreement, by a single security interest in all of the Collateral (i) each such Person will be subject to the limitation of recourse, waiver of claims and rights, and subordination provisions set forth in this Article X and (ii) all Closed-End Collections will be applied in accordance with the priorities and procedures set forth in this Article X.