Common use of Dissolution or Insolvency Clause in Contracts

Dissolution or Insolvency. Each Subordinated Creditor agrees that upon any distribution of the assets of any Loan Party or upon any dissolution, winding up, liquidation or reorganization of any Loan Party, whether in bankruptcy, insolvency, reorganization, arrangement or receivership proceedings or otherwise, or upon any assignment for the benefit of creditors or any other marshaling of the assets and liabilities of any Loan Party: (a) the Senior Creditors of such Loan Party shall first be entitled to receive payment in full in cash of the Senior Obligations of such Loan Party in accordance with the terms of such Senior Obligations before any Subordinated Creditor shall be entitled to receive any payment on account of the Subordinated Obligations of such Loan Party, whether as principal, interest or otherwise; and (b) any payment by, or distribution of the assets of, such Loan Party of any kind or character, whether in cash, property or securities, received by or on behalf of any Subordinated Creditor shall be held in trust for the benefit of, and shall be paid over to, the Senior Creditors of any Loan Party to the extent necessary to make payment in full in cash of all Senior Obligations of such Loan Party remaining unpaid, after giving effect to any concurrent payment or distribution to the Senior Creditors in respect of the Senior Obligations.