Common use of GUARANTY LIABILITY Clause in Contracts

GUARANTY LIABILITY. 1. Guarantor's obligations hereunder and under the other Loan Documents shall be in an amount (such amount being referred to herein as the "Maximum Guaranty Liability") equal to, but not in excess of, the maximum liability permitted under Title 11 of the United States Code, any other state or federal laws governing bankruptcy, suspension of payments, reorganization, arrangement, adjustment of debts, dissolution, insolvency, relief of debtors or creditors' rights and any other similar laws ("Applicable Bankruptcy Law"). To the extent such obligations otherwise would be subject to avoidance under Applicable Bankruptcy Law, if Guarantor is deemed not to have received valuable consideration, fair value or reasonably equivalent value for its obligations hereunder or under the other Loan Documents, Guarantor's obligations hereunder and under the other Loan Documents shall be reduced to that amount which, after giving effect thereto, would not render Guarantor insolvent, or leave Guarantor with an unreasonably small capital to conduct its business, or cause Guarantor to have incurred debts (or to be deemed to have intended to incur debts), beyond its ability to pay such debts as they mature, at the time such obligations are deemed to have been incurred under Applicable Bankruptcy Law. As used herein, the terms "insolvent" and "unreasonably small capital" shall likewise be determined in accordance with Applicable Bankruptcy Law. This Paragraph 1 is intended solely to preserve the rights of the Bank hereunder and under the other Loan Documents to the maximum extent permitted by Applicable Bankruptcy Law, and neither the Guarantor nor any other person or entity shall have any right or claim under this Paragraph 1 that otherwise would not be available under Applicable Bankruptcy Law. Guarantor agrees that the Obligations at any time and from time to time may exceed the Maximum Guaranty Liability of Guarantor, without impairing this Guaranty or affecting the rights and remedies of the Bank hereunder.

GUARANTY LIABILITY. 1. Guarantor's obligations hereunder and under the other Loan Documents shall be in an amount (such amount being referred to herein as the "Maximum Guaranty Liability") equal to, but not in excess of, the maximum liability permitted under Title 11 of the United States Code, any other state or federal laws governing bankruptcy, suspension of payments, reorganization, arrangement, adjustment of debts, dissolution, insolvency, relief of debtors or creditors' rights and any other similar laws ("Applicable Bankruptcy Law"). To the extent such obligations otherwise would be subject to avoidance under Applicable Bankruptcy Law, if Guarantor is deemed not to have received valuable consideration, fair value or reasonably equivalent value for its obligations hereunder or under the other Loan Documents, Guarantor's obligations hereunder and under the other Loan Documents shall be reduced to that amount which, after giving effect thereto, would not render Guarantor insolvent, or leave Guarantor with an unreasonably small capital to conduct its business, or cause Guarantor to have incurred debts (or to be deemed to have intended to incur debts), beyond its ability to pay such debts as they mature, at the time such obligations are deemed to have been incurred under Applicable Bankruptcy Law. As used herein, the terms "insolvent" and "unreasonably small capital" shall likewise be determined in accordance with Applicable Bankruptcy Law. This Paragraph 1 is intended solely to preserve the rights of the Bank hereunder and under the other Loan Documents to the maximum extent permitted by Applicable Bankruptcy Law, and neither the Guarantor nor any other person or entity shall have any right or claim under this Paragraph 1 that otherwise would not be available under Applicable Bankruptcy Law. Guarantor agrees that the Obligations at any time and from time to time may exceed the Maximum Guaranty Liability of Guarantor, without impairing this Guaranty or affecting the rights and remedies of the Bank hereunder.Bankruptcy