Notes Held by Guarantor, Etc Sample Clauses
The "Notes held by Guarantor, etc" clause defines how promissory notes or similar debt instruments that are held by the guarantor or related parties are treated under the agreement. Typically, this clause clarifies whether such notes are considered outstanding obligations or if they are effectively cancelled or subordinated when held by the guarantor, an affiliate, or a related entity. For example, if the guarantor acquires a note originally issued by the borrower, the clause may specify that the note is not enforceable against the borrower or is subject to certain restrictions. The core function of this clause is to prevent conflicts of interest and ensure that the guarantor cannot use its position to claim repayment in a way that undermines the agreement’s intent or the rights of other creditors.
Notes Held by Guarantor, Etc. Solely for the purpose of determining whether Holders holding the requisite percentage of the aggregate principal amount of Notes then outstanding approved or consented to any amendment, waiver or consent to be given under this Guarantee, or have directed the taking of any action provided herein to be taken upon the direction of Holders holding a specified percentage of the aggregate principal amount of Notes then outstanding, Notes directly or indirectly owned by the Guarantor, the Company, any other Subsidiary or any of their respective Affiliates shall be deemed not to be outstanding.