Common use of Reinstatement of Guaranty Clause in Contracts

Reinstatement of Guaranty. This Agreement shall continue to be effective, or be reinstated, as the case may be, if and to the extent at any time any payment, in whole or in part, made by any of Drilling B, Drilling D or the Guarantor to any Beneficiary in respect of any Guaranteed Obligation is rescinded or must otherwise be restored or returned by such Beneficiary upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of such entity, or upon or as a result of the appointment of a custodian, receiver, trustee or other officer with similar powers with respect to any such entity or any substantial part of its property, or otherwise, all as though such payments had not been made and, to the extent permitted by applicable law, in such event, the Guarantor shall pay such Beneficiary an amount equal to the payment that has been rescinded or returned. No Beneficiary shall be required to litigate or otherwise dispute its obligation to make such repayments if it in good faith believes that such obligation exists.