Common use of Priority and Subordination Clause in Contracts

Priority and Subordination. This Seller’s Credit shall constitute senior debt obligations of the Borrower and has priority over any shareholder loans (to the Borrower) and equity provided by its owners. Notwithstanding the foregoing, the obligations of the Borrower and the claims of the Creditor under this Seller’s Credit shall – if the Borrower, the Guarantor or the Target becomes insolvent or enters into bankruptcy proceedings - be fully subordinated to claims of the Senior Banks in respect of the Senior Bank Debt Guarantee Obligations.

Priority and Subordination. This Seller’s Credit and Seller’s Loan shall constitute senior debt obligations of the Borrower and has have priority over any shareholder loans (to the Borrower) and equity provided by its owners. Notwithstanding the foregoing, the obligations of the Borrower and the claims of the Creditor under this Seller’s Credit and Seller’s Loan shall – if the Borrower, the Guarantor or the Target becomes insolvent or enters into bankruptcy proceedings - proceedings—be fully subordinated to claims of the Senior Banks in respect of the Senior Bank Debt Guarantee Obligations.