Common use of Bankruptcy or Liquidation of the Borrower Clause in Contracts

Bankruptcy or Liquidation of the Borrower. If the Borrower becomes bankrupt, enters into a composition or makes any arrangement with its creditors, or is dissolved, liquidated or wound up, the Guarantor shall not claim, rank, prove or vote as a creditor of the Borrower or its estate in competition with the Bank in respect of any amounts owing to the Guarantor by the Borrower on any account whatsoever, but instead shall give the Bank the benefit of any such proof and of all amounts to be received in respect of that proof until all Guaranteed Obligations have been fully paid.