Common Securities Guarantee Clause Samples
The Common Securities Guarantee clause establishes that the obligations or payments due on common securities are guaranteed by a specified party, often to provide assurance to holders of those securities. In practice, this means that if the issuer of the common securities fails to meet its payment or performance obligations, the guarantor will step in to fulfill those commitments. This clause is typically applied in trust or financing structures where common securities are issued alongside preferred or subordinated securities. Its core function is to enhance investor confidence and reduce risk by ensuring that holders of common securities have a reliable source of payment, thereby making the securities more attractive and marketable.
Common Securities Guarantee. 3 Company ................................................................................................3
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Common Securities Guarantee. 3 Common Stock 3
Common Securities Guarantee. The Guarantor irrevocably and unconditionally agrees to pay in full to the Holders the Guarantee Payments (without duplication of amounts theretofore paid by the Issuer), as and when due, regardless of any defense, right of set-off or counterclaim that the Issuer may have or assert; provided, however, if an Declaration Event of Default has occurred and is continuing, the rights of Holders of Common Securities to receive Guarantee Payments are subordinated to the rights of holders of Capital Securities to receive payments under the Capital Securities Guarantee ("Capital Guarantee Payments"), with the result that no Guarantee Payments shall be made unless payment in full in cash of all accumulated and unpaid Capital Guarantee Payments on all outstanding Capital Securities shall have been made or provided for, and all funds immediately available to the Institutional Trustee shall first be applied to the payment in full in cash of all such Capital Guarantee Payments then due and payable. The Guarantor's obligation to make Guarantee Payments will not be discharged except by payment of the Guarantee Payments in full. The Guarantor's obligation to make a Guarantee Payment may be satisfied by direct payment of the required amounts by the Guarantor to the Holders or by causing the Issuer to pay such amounts to the Holders.
Common Securities Guarantee. The Guarantor irrevocably and unconditionally agrees to pay in full to the Holders the Guarantee Payments (without duplication of amounts theretofore paid by the Issuer), as and when due, regardless of any defense, right of set-off or counterclaim that the Issuer may have or assert; provided, however, if an Declaration Event of Default has occurred and is continuing, the rights of Holders of Common Securities to receive Guarantee Payments are subordinated to the rights of holders of Capital Securities to receive payments under the Capital Securities Guarantee ("Capital Guarantee Payments"), with the result that no Guarantee Payments shall be made unless payment in full in cash of all accumulated and unpaid Capital Guarantee Payments on all outstanding Capital Securities shall have been made or provided for, and all funds immediately available to the Institutional Trustee shall first be applied to the payment in full in cash of all such Capital Guarantee Payments then due and payable. The Guarantor's obligation to make Guarantee Payments will not be discharged except by payment of the Guarantee Payments in full. The Guarantor's obligation to make a Guarantee Payment may be satisfied by direct payment of the required amounts by the Guarantor to the Holders or by causing the Issuer to pay such amounts to the Holders.