Multiple Debtors Sample Clauses
The "Multiple Debtors" clause defines how obligations and liabilities are handled when more than one party is responsible for a debt under an agreement. Typically, this clause clarifies whether each debtor is individually responsible for the full amount (joint and several liability) or only for their respective share. For example, if two companies co-sign a loan, the lender can pursue either or both for repayment. The core function of this clause is to ensure clarity regarding the extent of each debtor's responsibility, thereby reducing ambiguity and potential disputes over payment obligations.
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Multiple Debtors. It is understood that if the Debtor is comprised of more than one Person, the charges and security interests created by the Debtor hereunder pursuant to Section 2.1 hereof shall be interpreted to be charges and security interests created by each such Person in respect of both its individually owned or acquired present and future property and the property now or hereafter held by it with one or more other such Persons as if that Person had granted such charges and security interests either alone or jointly with one or more other such Persons pursuant to Section 2.1 hereof.
Multiple Debtors. It is understood that if the Debtor is comprised of more than one Person, the charges created by the Debtor hereunder pursuant to Section 2.1 hereof shall be interpreted to be charges created by each such Person in respect of both its individually owned or acquired present and future property and the property now or hereafter held by it with one or more other such Persons as if that Person had granted such charges either alone or jointly with one or more other such Persons pursuant to Section 2.1 hereof.
Multiple Debtors. The term "Borrower", if more than one, shall mean each and every party comprising the Debtor, and each such party shall be jointly and severally liable for the payment of the Obligations and the performance of the terms hereof.
Multiple Debtors. When more than one Debtor signs this Agreement all agree that:
a. Construction - whenever the word "Debtor" appears in this Agreement, it shall mean "each Debtor."
b. Breach - breach of any Covenant or Warranty by any Debtor may, at CNB's option, be treated as a breach by all Debtors.
Multiple Debtors. If more than one Debtor signs this Agreement, their liability under this Agreement is joint and several. Any Debtor who is a married person agrees to recourse against his or her separate property for all Obligations. The breach of any provisions of this Agreement by any Debtor shall be a breach by all Debtors unless waived by Bank. Any release or substitution of Collateral or any impairment or suspension of Bank's rights against a Debtor, or any transfer of a Debtor's interest to another, shall not affect the liability of any other Debtor. All Debtors waive to the extent permitted by law: (a) any right to require Bank to proceed against any Debtor before any other, or to pursue any other remedy; (b) presentment protest and notice of protest, demand and notice of nonpayment demand of performance, notice of sale, and advertisement of sale; (c) any right to the benefit of or to direct the application of any Collateral until all Obligations shall have been paid; and (d) any right of subrogation to Bank until all Obligations shall have been paid or performed in full.
Multiple Debtors. If there is more than one Debtor, the following provisions shall apply:
(a) each Debtor agrees that it is jointly and severally, directly, and primarily liable to Secured Party for payment in full of the Obligations and that such liability is independent of the duties. Obligations, and liability of each and all of the other joint and several Debtors. Secured Party may bring a separate action or actions on the Obligations against each, any, or all of the Debtors, whether action is sought against any other or all of such Debtors or any one or more of the Debtors is or is not joined therein.
(b) Each Debtor agrees that any release that may be given by Secured Party to any one or more of the Debtors or any guarantor of the Obligations shall not release any other Debtor from its Obligations hereunder.
(c) Each Debtor hereby waives any right to assert against Bank any defense (legal or equitable), setoff, counterclaim, or claims that such Debtor individually may now or any time hereafter have against another Debtor or any other party liable to Secured Party in any manner or way whatsoever.
(d) Any and all present and future debt and other obligations of any Debtor to any other Debtor are hereby subordinated to the full payment and performance of the Obligations; provided, however, such debt and other obligations may be incurred and repaid, subject to the terms of this agreement, as long as no Event of Default shall have occurred and not have been waived.
(e) Each Debtor is presently informed as to the financial condition of each of the other Debtors and of all other circumstances that a diligent inquiry would reveal and that bear upon the risk of nonpayment of the Obligations. Each Debtor hereby covenants that it will continue to keep itself informed as to the financial condition of all other Debtors, the status of all other Debtors, and all circumstances that bear upon the risk of nonpayment. Absent a written request from any of the Debtors to Secured Party for information, each Debtor hereby waives any and all rights it may have to require Secured Party to disclose to such Debtor any information that Secured Party may now or hereafter acquire concerning the condition or circumstances of any of the Debtors.
(f) Each Debtor hereby waives all rights to notices of default, existence, creation, or incurring of new or additional indebtedness and all other notices of formalities to which such Debtor may, as a joint and several Debtor hereunder, be entitled.
Multiple Debtors. When more than one Debtor signs this Agreement all agree that:
5.7.1. Construction - whenever the word "Debtor" appears in this Agreement, it shall mean "each Debtor".
5.7.2. Breach - breach of any Covenant or Warranty by any Debtor may, at CNB's option, be treated as a breach by all Debtors.
5.7.3. Liability - the liability of each Debtor is joint and several and the discharge of any Debtor, for any reason other than full payment, or any extension, forbearance, change of rate of interest, or acceptance, release or substitution of security or any impairment or suspension of CNB's remedies or rights against one Debtor, shall not affect the liability of any other Debtor.
5.7.4. Waiver - all Debtors waive the right to require CNB to proceed against one Debtor before any other or to pursue any other remedy in CNB's power.
Multiple Debtors. If there is more than one Debtor named herein, the term “Debtor” shall mean all and each of them, their obligations under this Agreement shall be joint and several, the Obligations shall include those of all or any one of them and no Debtor shall have any right of subrogation, exoneration, reimbursement or indemnity whatsoever and no right of recourse to the Collateral for the Obligations hereunder unless and until all of the Obligations have been paid or performed in full.
Multiple Debtors. If more than one Debtor executes this Security ----------------- Agreement, the term "Debtor" includes each of the Debtors as well as all of them, and their obligations under this Agreement shall be joint and several.
Multiple Debtors. 20.1 If the Debtor consists of more than one entity then the term "Debtor" shall apply to each such entity individually and to all such entities collectively and every covenant, obligation and agreement to be observed and performed by the Debtor in this instrument shall constitute joint and several covenants, obligations, and agreements of each and all of such entities.