Common use of No Right of Action Clause in Contracts

No Right of Action. If an Event of Default occurs and is continuing under the Seller Note, the Subordinated Creditor may accelerate all or a portion of the Subordinated Indebtedness, but will not commence any action or proceeding against the Loan Parties to recover all or any part of the Subordinated Indebtedness, or join with any creditor (unless the Senior Lender shall so join) in bringing any proceeding against the Loan Parties under any bankruptcy, reorganization, readjustment of debt, arrangement of debt, receivership, liquidation or insolvency law or statute of the federal or any state government, unless and until the Senior Indebtedness has been indefeasibly paid in full and all commitments of the Senior Lender to make loans and other credit accommodations to the Loan Parties have been terminated. The Subordinated Creditor will not obtain or otherwise acquire or accept any lien in any property or assets of the Loan Parties. The Subordinated Creditor will not commence any action or proceeding with respect to any property or assets of the Loan Parties, will not take possession of, sell, or dispose of any property or assets of the Loan Parties, and will not exercise or enforce any right or remedy available to the Subordinated Creditor with respect to any property or assets of the Loan Parties other than to accelerate all or a portion of the Subordinated Indebtedness, unless and until the Senior Indebtedness has been paid in full and all commitments of the Senior Lender to make loans and other credit accommodations to the Loan Parties have been terminated. Notwithstanding anything to the contrary contained in this Agreement, the Subordinated Creditor shall be permitted to commence any action or proceeding against the Loan Parties to recover all or any part of the Subordinated Indebtedness, or join with any creditor in bringing any proceeding against the Loan Parties under any bankruptcy, reorganization, readjustment of debt, arrangement of debt, receivership, liquidation or insolvency law or statute of the federal or any state government at any time following the two hundredth day (200th) day after the Subordinated Creditor has provided written notice of an Event of Default (as defined in the Seller Note) to the Loan Parties and the Senior Lender; provided that such Event of Default (as so defined) is continuing and has not been cured.