Security and Subordination Clause Samples
The Security and Subordination clause establishes the priority of claims or interests in collateral or assets, typically in the context of secured lending or financing arrangements. It specifies which parties have superior rights to the collateral and which parties' interests are subordinate, meaning they will be satisfied only after the senior claims are met. For example, a lender may require that its security interest in a borrower's assets takes precedence over other creditors, or that any future security interests granted by the borrower are expressly subordinated. This clause is essential for clarifying the order of repayment in the event of default or insolvency, thereby reducing uncertainty and managing risk among multiple creditors.
Security and Subordination. This is the Note referred to in that certain Security Agreement between the Maker and the Payee, dated March 18, 2009 (the "Security Agreement"), and is entitled to the benefits of all of the terms and conditions and the security of all of the security interests and liens granted pursuant to the Security Agreement. This Note shall be subordinated to all indebtedness, liabilities and other obligations of the Company, whether now existing or hereinafter incurred, except that this Note shall rank pari passu with the other Notes and except to the extent expressly provided in agreements relating to any such indebtedness, liabilities and other obligations.
Security and Subordination. The Company’s obligations under this Note are subject to a security agreement in the form attached as Exhibit B to the Agreement which secures the repayment of the Loan and grants Holder a continuing security interest in all presently existing and hereafter acquired assets and property of the Company of whatever nature and wherever located which such Security Interest is senior to all other security interests or Encumbrances against the assets and property of the Company other than Senior Indebtedness and Parity Indebtedness. The Company, in its sole discretion, may subordinate this Note to any Senior Indebtedness of the Company. .
Security and Subordination. Hedging Agreement(s)) and 20.4 (Enforcement of the Security Documents) shall apply in respect of the guarantee and indemnity granted under this Clause 19.
Security and Subordination. The Obligors shall and the Company shall ensure that each relevant member of the Group will at their own expense:
(a) enter into the Security Sharing Agreement and the Security Documents with the Finance Parties and other creditors under Facilities which are to benefit from a Security Document under the Agreed Security Principles as soon as reasonably practicable and in any event within 15 Business Days following the date on which it is not prevented from doing so under the terms of the USPP;
(b) enter into the Subordination Agreement as soon as reasonably practicable and in any event within 45 days of the date of this Agreement; and
(c) execute and do all such assurances, acts and things as the Intercreditor Agent and the Security Agent may reasonably require to effect the above including perfecting or protecting the security intended to be afforded by the Security Documents and shall deliver to the Intercreditor Agent and the Security Agent at the same time such directors’ and shareholders’ resolutions, title documents and other documents and legal opinions as set out in Part 2 of Schedule 2 (Conditions precedent) and otherwise as the Intercreditor Agent and the Security Agent may reasonably require in relation to the same.
Security and Subordination. (a) This Bond shall be secured by a security interest in all of the Issuer's assets, including after-acquired assets, subject only to prior, perfected security interests, and to the sale of assets in the ordinary course of business provided that the proceeds of such sales are re-invested in inventory or used to pay operating expenses of the Issuer, since it is the intent of the Parties that no proceeds be used for payment of dividends or extra-ordinary compensation to the principals of the Issuer.
(b) The security interest shall be evinced by such documentation as Yankees, as the representative for all Bond Holders, shall deem appropriate from time to time, but in any event, by forms adopted under the Uniform Commercial Code of the States of Delaware, Florida and such other states in which the Issuer formally qualifies to engage in business, and properly executed and timely filed with such states (e.g., Form UCC-1).
(c) In the event of default hereunder, Yankees, acting as the irrevocable agent for all Bond Holders but without fiduciary obligations thereto, shall make all decisions pertaining to appropriate remedies for default, including without limitation, those involving the dispute resolution provisions of the Bonds.
Security and Subordination. The debts evidenced by the Note shall be secured by a security interest in the oil and gas properties of Borrower listed on Exhibit B hereto, provided, however, that such security interest shall be subordinated to the existing security interest of Borrower's primary lenders, currently R&M Oil and Gas, Ltd..
Security and Subordination. Swap Agreement(s)
Security and Subordination. As Security for the performance of Maker's obligations under this Note, Maker hereby grants to Holder a security interest, on the same collateral upon which Instar Holdings Inc. ("Instar") has been granted under that certain Facility Agreement dated October 31st, 1996 by and between Maker and Instar and so amended between Instar and Superstar Ventures Limited ("Superstar") in an Amendment Agreement dated on or about January 12,
Security and Subordination. The Holder acknowledges that this Note is an obligation of the Company. The Holder also acknowledges that this Note shall be repaid from the proceeds of equity, debt or other capital raises and other cash flow into the Company from revenue generated from the sale of the Company’s products and/or services. The Holder consents to the Company obtaining additional debt some of which may be senior to the Note.
Security and Subordination. All amounts outstanding under the Facility are unsecured and fully subordinated to any charges or rights accrued or held by _________________ [senior lender] in connection with the _________________ [loan facility] made available to _________________ [the Borrower] under a _________________ [facility agreement] dated _________________. INTEREST RATE: _________________ % per annum. OR _________________% per annum above LIBOR. INTEREST PERIODS: ___________________________________________________.