Common use of Limitation on Obligations of Guarantors Clause in Contracts

Limitation on Obligations of Guarantors. (a) Anything in this Agreement to the contrary notwithstanding, the right of recovery against each Guarantor under this Article VII shall not exceed $1.00 less than the lowest amount which would render such Guarantor’s obligations under this Article VII void or voidable under applicable law, including, without limitation, the Uniform Fraudulent Conveyance Act, Uniform Fraudulent Transfer Act or any similar foreign, federal or state law to the extent applicable to the guaranty set forth herein and the obligations of each Guarantor hereunder. To effectuate the foregoing, the obligations of the Guarantors hereunder shall be limited to an aggregate amount equal to the largest amount that would not render such obligations subject to avoidance under Section 548 of the United States Bankruptcy Code or any comparable provisions of applicable law. To the fullest extent permitted by applicable law, this Section 7.06 shall be for the benefit solely of creditors and representatives of creditors of each Guarantor and not for the benefit of such Guarantor or the holders of any Equity Interest in such Guarantor.