Common use of Return of Payment Clause in Contracts

Return of Payment. Guarantor hereby agrees that if at any time all or any part of any payment theretofore applied by Lender to any Indebtedness Hereby Guaranteed is rescinded or returned by Lender for any reason whatsoever (including, without limitation, the insolvency, bankruptcy, liquidation or reorganization of any party), the Indebtedness Hereby Guaranteed shall, for the purposes of this Guaranty, be deemed to have continued in existence to the extent of such payment, notwithstanding such application by Lender, and this Guaranty shall continue to be effective or be reinstated, as the case may be, as to the Indebtedness Hereby Guaranteed, all as though such application by Lender had not been made.