Common use of Priority of the Collateral Agent’s Security Interest Clause in Contracts

Priority of the Collateral Agent’s Security Interest. The Custodian (a) subordinates to the security interest in favor of the Collateral Agent on behalf of the Secured Parties any security interest, lien or right of recoupment or setoff that the Custodian may have, now or in the future against the Custodial Account or the Interest Reserve Account or any funds or financial assets credited thereto and (b) agrees that it will not exercise any right in respect of any such security interest or Lien or any such right of recoupment or setoff until the security interest is terminated (except that the Custodian may set off the face amount of any checks which have been credited to the accounts, but are subsequently returned unpaid because of uncollected or insufficient funds).