Default on Priority Indebtedness Clause Samples

Default on Priority Indebtedness. No Subsidiary Guarantor shall pay principal of, premium, if any, or interest on the Guarantor Obligations or make any payment with respect to the Guarantor Obligations due and owing to the Agents (collectively, “pay the Guarantor Obligations”) if either of the following occurs (a “Priority Payment Default”): (a) any Obligation on any Priority Indebtedness is not paid in full in cash when due (after giving effect to any applicable grace period); (b) any other default on Priority Indebtedness occurs and the maturity of such Priority Indebtedness is accelerated in accordance with its terms; unless, in either case, the Priority Payment Default has been cured or waived and any such acceleration has been rescinded or such Priority Indebtedness has been discharged or paid in full in cash; provided, however, that a Subsidiary Guarantor shall be entitled to pay the Guarantor Obligations without regard to the foregoing fi the Subsidiary Guarantor and the Trustee receive written notice approving such payment from the Representatives of all Priority Indebtedness with respect to which the Priority Payment Default has occurred and is continuing. During the continuance of any default (other than a Priority Payment Default) (a “Non-Priority Payment Default”) with respect to any Priority Indebtedness pursuant to which the maturity thereof may be accelerated without further notice (except such notice as may be required to effect such acceleration) or the expiration of any applicable grace periods, no Subsidiary Guarantor shall pay the Guarantor Obligations due and owing to the Agents for a period (a “Payment Blockage Period”) commencing upon the receipt by the Trustee (with a copy to the Company) of written notice (a “Blockage Notice”) of such Non-Priority Payment Default from the Representative of such Priority Indebtedness specifying an election to effect a Payment Blockage Period and ending 179 days thereafter. The Payment Blockage Period shall end earlier if such Payment Blockage Period is terminated (i) by written notice to the Trustee and the Company from the Person or Persons who gave such Blockage Notice; (ii) because the default giving rise to such Blockage Notice is cured, waived or otherwise no longer continuing; or (iii) because such Priority Indebtedness has been discharged or repaid in full in cash. Notwithstanding the provisions described in the immediately preceding paragraph (but subject to the provisions contained in the first paragraph of this Section 12....