Common use of Liability of the Parties and Payment of Claims Clause in Contracts

Liability of the Parties and Payment of Claims. (a) The liability of the Parties arising from their subscriptions to the capital stock of the Bank shall continue until all direct and contingent obligations shall have been discharged. (b) All creditors holding direct claims shall be paid out of the assets of the Bank and then out of payments to the Bank on unpaid or callable subscriptions. Before making any payments to creditors holding direct claims, the Board of Directors shall make such arrangements as are necessary, in its judgment, to ensure a pro rata distribution among holders of direct and contingent claims.