Reinstating avoided transaction Clause Samples
Reinstating avoided transaction. If a claim that any payment, transaction, conveyance or transfer during the currency of the Security affecting or relating in any way to the Indebtedness is void or voidable under any law relating to bankruptcy or winding up or the protection of creditors is upheld, conceded or comprised (Preference):
Reinstating avoided transaction. (1) The Grantor agrees that if:
(1) a payment or other transaction relating to the Secured Money is made; or
(2) the Secured Party has released or discharged the Grantor from its obligations under this document or any assets of the Grantor from a Security, in either case in reliance on a payment, receipt or other transaction to or in favour of the Secured Party, and that payment or other transaction is void, voidable, unenforceable or defective for any reason (including under any law relating to insolvency, sequestration, liquidation, winding up or bankruptcy and any provision of any agreement, arrangement or scheme, formal or informal, relating to the administration of any of the assets of any person) or a related claim is upheld, conceded or settled (each an Avoidance), then even if the Secured Party knew or should have known of the Avoidance:
(3) each Power and the Grantor's liability under this document will immediately be what it would have been, and will continue, as if the payment or transaction the subject of the Avoidance had not occurred; and
(4) the Grantor will immediately do all things and execute all documents required by the Secured Party to restore the Secured Party to its position immediately before the Avoidance (including reinstating this document).
Reinstating avoided transaction. Each Security Provider agrees that if a payment or other transaction relating to the Obligations is void, voidable, unenforceable or defective for any reason or a related claim is upheld, conceded or settled (each an Avoidance), then even though the Security Trustee or a Beneficiary knew or should have known of the Avoidance:
(a) each Power and the Security Provider's liability under each Loan Document will be what it would have been, and will continue, as if the payment or transaction the subject of the Avoidance had not occurred; and
(b) it will immediately execute and do anything necessary or required by the Security Trustee to restore the Security Trustee or Beneficiary (as applicable) to its position immediately before the Avoidance (including reinstating any Loan Document). This clause survives any termination or full or partial discharge or release of any Loan Document.