Deed of Priority Sample Clauses
A Deed of Priority is a legal agreement that establishes the order in which multiple creditors will be repaid from the assets of a debtor, particularly in the event of default or insolvency. This clause typically outlines which lender has first claim to specific collateral and how any proceeds from the sale of secured assets are distributed among the parties. For example, if a company has both a senior and a junior lender, the Deed of Priority will specify that the senior lender is paid in full before the junior lender receives any payment. Its core practical function is to prevent disputes between creditors by clearly defining their respective rights and priorities, thereby reducing uncertainty and legal risk in multi-lender financing arrangements.
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Deed of Priority. The Documents are subject to this Deed. In the event of any inconsistency between any Document and this Deed, this Deed shall prevail.
Deed of Priority. If the Mortgagor enters into Project Financing, the Mortgagee agrees that on request by the Mortgagor it will enter into a deed of priority or deeds of priority (as appropriate) with that financier or financiers (as appropriate) on terms reasonably acceptable to the Mortgagee by which the Mortgagee will agree that the moneys owing to that financier or those financiers (as appropriate) in relation to the Project Financing will rank in priority to the Secured Money, provided that such priority will apply to the Project Financing only.
Deed of Priority. This Deed is subject to the terms of the Deed of Priority.
Deed of Priority. Senior Creditor and Junior Creditors hereby acknowledge and agree that the Deed of Priority is intended to supplement this Agreement, and no party shall take any action relative to the Deed of Priority that is inconsistent with the terms of this Agreement. In the event that any provision of the Deed of Priority conflicts with any provision of this Agreement, the terms of this Agreement shall control over the Deed of Priority in all respects.
Deed of Priority. (a) Any party to the Deed of Priority (other than the Security Agent) does not comply with any provision of the Deed of Priority.
(b) No Event of Default under paragraph (a) above will occur if the failure to comply is capable of remedy and is remedied within 15 Business Days of the earlier of:
(i) the Facility Agent giving notice to the Account Party; and
(ii) an Obligor becoming aware of the failure to comply.
(c) The Deed of Priority or any obligation of a party (other than the Security Agent) thereunder is not or ceases to be in full force and effect or is alleged by any such party to be ineffective for any reason.
Deed of Priority. If the Chargor enters into Project Financing, the Chargee agrees that on request by the Chargor it will enter into a deed of priority or deeds of priority (as appropriate) with that financier or those financiers (as appropriate) by which the Chargee will agree that the moneys owing to that financier or those financiers (as appropriate) in relation to the Project Financing will rank in priority to the Secured Money, provided that such priority will apply to the Project Financing only and provided that the Chargee may withhold its consent to such deeds of priority if it demonstrates the deeds of priority are not advanced on reasonable and commercial terms.