Common use of Effectiveness in Insolvency or Liquidation Proceedings Clause in Contracts

Effectiveness in Insolvency or Liquidation Proceedings. The parties hereto acknowledge that this Agreement governs the relative priority of the Liens of the First Lien Representative and the Second Lien Representative as set forth in Section 2.1, and that this Agreement does not subordinate (other than with respect to Lien subordination) the Second Lien Representative’s or Second Lien Secured Parties’ claims, or the right to payments, to the claims or rights to payment of the First Lien Representative or the First Lien Secured Parties. The parties hereto acknowledge that this Agreement is a lien “subordination agreement” under section 510(a) of the Bankruptcy Code, which will be effective before, during and after the commencement of an Insolvency or Liquidation Proceeding. All references in this Agreement to any Grantor will include such Person as a debtor-in-possession and any receiver or trustee for such Person in an Insolvency or Liquidation Proceeding.