Common use of Automatic Release of Junior Liens Clause in Contracts

Automatic Release of Junior Liens. (a) The LC Collateral Agent and each other LC Secured Party agrees that, in the event of a sale, transfer or other disposition of any ABL Priority Collateral in connection with the foreclosure upon or other exercise of rights and remedies with respect to such ABL Priority Collateral that results in the release by the ABL Collateral Agent of the Lien held by the ABL Collateral Agent on such ABL Priority Collateral, the Lien held by the LC Collateral Agent on such ABL Priority Collateral shall be automatically released; provided that, notwithstanding the foregoing, all holders of the LC Obligations shall be entitled to any proceeds of a sale, transfer or other disposition under this clause (a) that remain after Discharge of the ABL Obligations, and the Liens on such remaining proceeds securing the LC Obligations shall not be automatically released pursuant to this Section 2.05(a).

Automatic Release of Junior Liens. (a) The LC Collateral Agent and each other LC Secured Party agrees that, in the event of a sale, transfer or other disposition of any ABL Notes Priority Collateral in connection with the foreclosure upon or other exercise of rights and remedies with respect to such ABL Notes Priority Collateral that results in the release by the ABL Notes Collateral Agent of the Lien held by the ABL Notes Collateral Agent on such ABL Notes Priority Collateral, the Lien held by the LC Collateral Agent on such ABL Notes Priority Collateral shall be automatically released; provided that, notwithstanding the foregoing, all holders of the LC Obligations shall be entitled to any proceeds of a sale, transfer or other disposition under this clause (a) that remain after Discharge of the ABL Notes Obligations, and the Liens on such remaining proceeds securing the LC Obligations shall not be automatically released pursuant to this Section 2.05(a).

Automatic Release of Junior Liens. (a) i. The LC Collateral Agent and each other LC Secured Party agrees that, in the event of a sale, transfer or other disposition of any ABL Notes Priority Collateral in connection with the foreclosure upon or other exercise of rights and remedies with respect to such ABL Notes Priority Collateral that results in the release by the ABL Notes Collateral Agent of the Lien held by the ABL Notes Collateral Agent on such ABL Notes Priority Collateral, the Lien held by the LC Collateral Agent on such ABL Notes Priority Collateral shall be automatically released; provided that, notwithstanding the foregoing, all holders of the LC Obligations shall be entitled to any proceeds of a sale, transfer or other disposition under this clause (a) that remain after Discharge of the ABL Notes Obligations, and the Liens on such remaining proceeds securing the LC Obligations shall not be automatically released pursuant to this Section 2.05(a).