{"component": "clause", "props": {"groups": [{"snippet_links": [{"key": "the-obligations", "type": "clause", "offset": [0, 15]}, {"key": "this-note", "type": "clause", "offset": [26, 35]}, {"key": "executed-by", "type": "clause", "offset": [72, 83]}, {"key": "the-obligors", "type": "clause", "offset": [84, 96]}, {"key": "in-favor-of", "type": "clause", "offset": [97, 108]}, {"key": "rights-of-the", "type": "clause", "offset": [127, 140]}, {"key": "the-security-agreement", "type": "clause", "offset": [164, 186]}, {"key": "indebtedness-of", "type": "clause", "offset": [263, 278]}, {"key": "provided-that", "type": "clause", "offset": [286, 299]}, {"key": "notwithstanding-anything-to-the-contrary", "type": "clause", "offset": [301, 341]}, {"key": "the-indebtedness", "type": "clause", "offset": [343, 359]}, {"key": "the-intercreditor-agreement", "type": "clause", "offset": [443, 470]}], "size": 3, "samples": [{"hash": "dIfWRa5BAjW", "uri": "/contracts/dIfWRa5BAjW#security-subordination", "label": "Credit Agreement (Bell Industries Inc /New/)", "score": 21.0, "published": true}, {"hash": "j962fBNMwtL", "uri": "/contracts/j962fBNMwtL#security-subordination", "label": "Intercreditor Agreement (Bell Industries Inc /New/)", "score": 20.0, "published": true}, {"hash": "7eRvOE7NEG7", "uri": "/contracts/7eRvOE7NEG7#security-subordination", "label": "Intercreditor Agreement (Newcastle Partners L P)", "score": 20.0, "published": true}], "snippet": "THE OBLIGATIONS DUE UNDER THIS NOTE ARE SECURED BY A SECURITY AGREEMENT EXECUTED BY THE OBLIGORS IN FAVOR OF PAYEE. ADDITIONAL RIGHTS OF THE PAYEE ARE SET FORTH IN THE SECURITY AGREEMENT. This Note will rank senior to all existing and future secured or unsecured indebtedness of Maker; provided that, notwithstanding anything to the contrary, the Indebtedness evidenced by this Note is hereby expressly subordinated in the manner set forth in the Intercreditor Agreement.", "hash": "8fd503152cb13b086c272f72bbed19af", "id": 3}, {"snippet_links": [{"key": "the-debenture", "type": "clause", "offset": [29, 42]}, {"key": "security-agreement", "type": "clause", "offset": [54, 72]}, {"key": "convertible-debenture", "type": "clause", "offset": [84, 105]}, {"key": "conditional-assignment-agreement", "type": "definition", "offset": [173, 205]}, {"key": "the-agreements", "type": "clause", "offset": [287, 301]}, {"key": "contained-in", "type": "definition", "offset": [354, 366]}, {"key": "performed-by", "type": "clause", "offset": [477, 489]}, {"key": "the-undersigned", "type": "clause", "offset": [490, 505]}, {"key": "to-the-same-extent", "type": "definition", "offset": [547, 565]}, {"key": "force-and-effect", "type": "clause", "offset": [584, 600]}, {"key": "agrees-to", "type": "clause", "offset": [675, 684]}, {"key": "in-accordance-with", "type": "definition", "offset": [756, 774]}, {"key": "agreement-for", "type": "clause", "offset": [843, 856]}, {"key": "events-of-default-and", "type": "clause", "offset": [861, 882]}, {"key": "rights-of", "type": "definition", "offset": [887, 896]}, {"key": "upon-an-event-of-default", "type": "clause", "offset": [926, 950]}, {"key": "capitalized-terms-not-defined-herein", "type": "clause", "offset": [956, 992]}, {"key": "the-meanings", "type": "definition", "offset": [1004, 1016]}], "size": 2, "samples": [{"hash": "gCmMYAacUrn", "uri": "/contracts/gCmMYAacUrn#security-subordination", "label": "Convertible Subordinated Secured Debenture (Wesley Clover Corp)", "score": 16.0, "published": true}, {"hash": "7S9EnU74vh8", "uri": "/contracts/7S9EnU74vh8#security-subordination", "label": "Convertible Subordinated Secured Debenture (Fastcomm Communications Corp)", "score": 16.0, "published": true}], "snippet": "This Debenture is secured by the Debenture Purchase & Security Agreement and is the Convertible Debenture referred to in the Debenture Purchase & Security Agreement and the Conditional Assignment Agreement (as that term is defined in the Debenture Purchase & Security Agreement). All of the agreements, conditions, covenants, provisions and stipulations contained in the Debenture Purchase & Security Agreement and the Conditional Assignment Agreement which are to be kept and performed by the undersigned are hereby made a part of this Debenture to the same extent and with the same force and effect as if they were fully set forth herein, and the undersigned covenants and agrees to keep and perform them or cause them to be kept and performed, strictly in accordance with their terms. Reference is made to the Debenture Purchase & Security Agreement for the Events of Default and the rights of acceleration of the maturity upon an Event of Default. All capitalized terms not defined herein shall have the meanings given them in the Debenture Purchase & Security Agreement.", "hash": "0108350087166d25de40cf8580405277", "id": 4}, {"snippet_links": [{"key": "this-note", "type": "clause", "offset": [0, 9]}, {"key": "in-all-respects", "type": "clause", "offset": [45, 60]}, {"key": "subordination-deed", "type": "clause", "offset": [68, 86]}, {"key": "the-purchase-agreement", "type": "clause", "offset": [102, 124]}], "size": 6, "samples": [{"hash": "hOPx7oYU8lO", "uri": "/contracts/hOPx7oYU8lO#security-subordination", "label": "Convertible Promissory Note (NAKED BRAND GROUP LTD)", "score": 30.288843258, "published": true}, {"hash": "13tUmdsnjUZ", "uri": "/contracts/13tUmdsnjUZ#security-subordination", "label": "Convertible Promissory Note (NAKED BRAND GROUP LTD)", "score": 30.1163586585, "published": true}, {"hash": "b0nm5KpQq1H", "uri": "/contracts/b0nm5KpQq1H#security-subordination", "label": "Convertible Promissory Note (NAKED BRAND GROUP LTD)", "score": 30.0232717317, "published": true}], "snippet": "This Note is unsecured. This Note is subject in all respects to the Subordination Deed (as defined in the Purchase Agreement).", "hash": "0f64df99756f4b54cc09642f6647828e", "id": 1}, {"snippet_links": [{"key": "bank-a", "type": "definition", "offset": [57, 63]}, {"key": "right-of-setoff", "type": "definition", "offset": [107, 122]}, {"key": "all-property", "type": "definition", "offset": [137, 149]}, {"key": "possession-of-the", "type": "clause", "offset": [189, 206]}, {"key": "obligations-of-the", "type": "clause", "offset": [281, 299]}, {"key": "this-guaranty", "type": "clause", "offset": [318, 331]}, {"key": "claims-of-any-nature", "type": "definition", "offset": [336, 356]}, {"key": "the-borrower", "type": "definition", "offset": [410, 422]}, {"key": "deed-of-trust-or-mortgage", "type": "clause", "offset": [453, 478]}, {"key": "real-property", "type": "definition", "offset": [499, 512]}, {"key": "full-right", "type": "definition", "offset": [519, 529]}, {"key": "in-favor-of", "type": "clause", "offset": [771, 782]}, {"key": "to-accept-payment", "type": "clause", "offset": [817, 834]}, {"key": "satisfaction-of", "type": "clause", "offset": [838, 853]}, {"key": "consent-of-the-bank", "type": "clause", "offset": [954, 973]}, {"key": "received-by", "type": "definition", "offset": [1035, 1046]}, {"key": "with-respect-to", "type": "clause", "offset": [1071, 1086]}, {"key": "form-received", "type": "clause", "offset": [1232, 1245]}, {"key": "assignment-by-the", "type": "clause", "offset": [1273, 1290]}, {"key": "by-the-bank", "type": "clause", "offset": [1318, 1329]}, {"key": "held-in-trust", "type": "clause", "offset": [1436, 1449]}, {"key": "property-of-the-bank", "type": "clause", "offset": [1476, 1496]}, {"key": "no-security", "type": "clause", "offset": [1528, 1539]}, {"key": "the-payment", "type": "clause", "offset": [1574, 1585]}, {"key": "nature-of-a", "type": "clause", "offset": [1682, 1693]}, {"key": "obligation-of-the", "type": "clause", "offset": [1849, 1866]}, {"key": "sole-discretion", "type": "clause", "offset": [1921, 1936]}, {"key": "notice-to-the-undersigned", "type": "clause", "offset": [1946, 1971]}, {"key": "without-affecting", "type": "clause", "offset": [2041, 2058]}, {"key": "to-acquire", "type": "definition", "offset": [2218, 2228]}, {"key": "payment-of-the-indebtedness", "type": "clause", "offset": [2326, 2353]}, {"key": "for-payment", "type": "clause", "offset": [2476, 2487]}], "size": 4, "samples": [{"hash": "ghkbLQo0ZJS", "uri": "/contracts/ghkbLQo0ZJS#security-subordination", "label": "Guaranty (Manitex International, Inc.)", "score": 20.993155373, "published": true}, {"hash": "5jPawT438kP", "uri": "/contracts/5jPawT438kP#security-subordination", "label": "Guaranty (Manitex International, Inc.)", "score": 20.993155373, "published": true}], "snippet": "The undersigned pledge(s), assign(s) and grant(s) to the Bank a security interest in and lien upon and the right of setoff as to any and all property of the undersigned now or later in the possession of the Bank. The undersigned further assign(s) to the Bank as collateral for the obligations of the undersigned under this Guaranty all claims of any nature that the undersigned now or later has (have) against the Borrower (other than any claim under a deed of trust or mortgage covering California real property) with full right on the part of the Bank, in its own name or in the name of the undersigned, to collect and enforce these claims. The undersigned subordinate(s) any claim of any nature that the undersigned now or later has (have) against the Borrower to and in favor of all Indebtedness and agree(s) not to accept payment or satisfaction of any claim that the undersigned now or later may have against the Borrower without the prior written consent of the Bank. Should any payment, distribution, security, or proceeds, be received by the undersigned upon or with respect to any claim that the undersigned now or may later have against the Borrower, the undersigned shall immediately deliver the same to the Bank in the form received (except for endorsement or assignment by the undersigned where required by the Bank) for application on the Indebtedness, whether matured or unmatured, and until delivered the same shall be held in trust by the undersigned as the property of the Bank. The undersigned agree(s) that no security now or later held by the Bank for the payment of any Indebtedness, whether from the Borrower, any guarantor, or otherwise, and whether in the nature of a security interest, pledge, lien, assignment, setoff, suretyship, guaranty, indemnity, insurance or otherwise, shall affect in any manner the unconditional obligation of the undersigned under this Guaranty, and the Bank, in its sole discretion, without notice to the undersigned, may release, exchange, enforce and otherwise deal with any security without affecting in any manner the unconditional obligation of the undersigned under this Guaranty. The undersigned acknowledge(s) and agree(s) that the Bank has no obligation to acquire or perfect any lien on or security interest in any asset(s), whether real or personal, to secure payment of the Indebtedness, and the undersigned is (are) not relying upon any asset(s) in which the Bank has or may have a lien or security interest for payment of the Indebtedness.", "hash": "90a4894caeb05f083bc264412a91ff51", "id": 2}, {"snippet_links": [{"key": "this-note", "type": "clause", "offset": [0, 9]}, {"key": "the-stock-purchase-agreement", "type": "clause", "offset": [39, 67]}, {"key": "the-security-agreement", "type": "clause", "offset": [69, 91]}, {"key": "the-pledge-agreement", "type": "clause", "offset": [123, 143]}, {"key": "entered-into", "type": "clause", "offset": [175, 187]}, {"key": "the-noteholders", "type": "clause", "offset": [226, 241]}, {"key": "rights-and-benefits", "type": "clause", "offset": [272, 291]}, {"key": "obligations-of-the-buyer", "type": "clause", "offset": [317, 341]}, {"key": "rights-of-the", "type": "clause", "offset": [374, 387]}, {"key": "to-receive", "type": "definition", "offset": [399, 409]}, {"key": "payment-of", "type": "definition", "offset": [491, 501]}, {"key": "debt-of", "type": "clause", "offset": [513, 520]}, {"key": "subordination-agreement", "type": "definition", "offset": [564, 587]}, {"key": "the-holder", "type": "clause", "offset": [656, 666]}, {"key": "the-senior", "type": "clause", "offset": [670, 680]}], "size": 1, "samples": [{"hash": "ffqPMIzyNSz", "uri": "/contracts/ffqPMIzyNSz#security-subordination", "label": "Secured Promissory Note (Wave2Wave Communications, Inc.)", "score": 21.1040383299, "published": true}], "snippet": "This Note is the \u201cNote\u201d referred to in the Stock Purchase Agreement, the Security Agreement (the \u201cSecurity Agreement\u201d) and the Pledge Agreement (the \u201cPledge Agreement\u201d), each entered into by and among the Buyer, RNK, Inc. and the Noteholders and is entitled to all of the rights and benefits referred to therein. The obligations of the Buyer evidenced by this Note, and the rights of the Noteholder to receive the payments herein described, are expressly junior and subordinate to the prior payment of all Senior Debt of the Buyer and are governed by that certain Subordination Agreement, of even date herewith, by and among the Buyer, the Noteholders and the holder of the Senior Debt.", "hash": "0cf869cfb619a482b4954a433e4d116e", "id": 5}, {"snippet_links": [{"key": "section-21", "type": "clause", "offset": [3, 14]}, {"key": "security-for-the-obligations", "type": "clause", "offset": [15, 43]}, {"key": "section-22", "type": "clause", "offset": [113, 124]}, {"key": "use-of-proceeds", "type": "definition", "offset": [125, 140]}], "size": 1, "samples": [{"hash": "gq5t6c6Qoy5", "uri": "/contracts/gq5t6c6Qoy5#security-subordination", "label": "364 Day Credit Agreement (Pegasus Communications Corp /)", "score": 18.0, "published": true}], "snippet": "13\nSection 2.1 Security for the Obligations; Subordination; Etc...............................................13 Section 2.2 Use of Proceeds................................................................................13", "hash": "62681e3252da0f8a35ff7bb7286f9ecf", "id": 6}, {"snippet_links": [{"key": "payment-and-performance", "type": "clause", "offset": [4, 27]}, {"key": "obligations-of-the-borrower", "type": "clause", "offset": [35, 62]}, {"key": "this-note", "type": "clause", "offset": [95, 104]}, {"key": "outstanding-equity-securities", "type": "definition", "offset": [244, 273]}, {"key": "by-the-borrower", "type": "clause", "offset": [305, 320]}, {"key": "pledge-agreement", "type": "definition", "offset": [350, 366]}, {"key": "the-lender", "type": "clause", "offset": [421, 431]}, {"key": "the-companies", "type": "definition", "offset": [475, 488]}, {"key": "business-assets", "type": "definition", "offset": [490, 505]}, {"key": "payment-of-principal-and-interest", "type": "definition", "offset": [557, 590]}, {"key": "repayment-of", "type": "clause", "offset": [635, 647]}, {"key": "senior-indebtedness", "type": "definition", "offset": [652, 671]}, {"key": "to-the-extent", "type": "clause", "offset": [691, 704]}, {"key": "in-the-event-of", "type": "definition", "offset": [744, 759]}, {"key": "dissolution-of-the", "type": "clause", "offset": [873, 891]}, {"key": "for-the-benefit-of", "type": "definition", "offset": [923, 941]}], "size": 1, "samples": [{"hash": "iF8aFWNthRS", "uri": "/contracts/iF8aFWNthRS#security-subordination", "label": "Secured Subordinated Promissory Note (Monterey Capital Acquisition Corp)", "score": 32.9685147159, "published": true}], "snippet": "The payment and performance of all obligations of the Borrower now or hereafter existing under this Note of any kind or nature, whether for principal, interest, fees, expenses or otherwise, shall be secured by a pledge of all of the issued and outstanding equity securities of each of BH&C and B&L, owned by the Borrower as set forth in that certain Pledge Agreement of even date herewith by and between the Borrower and the Lender (the \u201cPledge Agreement\u201d) and and a lien on the Companies\u2019 business assets by way of guaranties of each of the Companies. The payment of principal and interest under this Note is subordinated in right of repayment of all Senior Indebtedness (as defined below) to the extent and in the manner set forth hereafter. In the event of (a) any bankruptcy, receivership, liquidation, reorganization or other similar proceeding, or (b) liquidation or dissolution of the Borrower or (c) any assignment for the benefit of \u200b \u200b", "hash": "a38cb0742cd6c1f3596dad4762a858b9", "id": 7}, {"snippet_links": [{"key": "this-note", "type": "clause", "offset": [0, 9]}, {"key": "obligation-of-the-borrower", "type": "clause", "offset": [33, 59]}, {"key": "payment-and-security", "type": "clause", "offset": [104, 124]}, {"key": "borrowed-monies", "type": "clause", "offset": [149, 164]}, {"key": "senior-lender", "type": "definition", "offset": [174, 187]}, {"key": "the-lender", "type": "clause", "offset": [193, 203]}, {"key": "agrees-to", "type": "clause", "offset": [204, 213]}, {"key": "subordination-agreement", "type": "definition", "offset": [237, 260]}, {"key": "requested-by", "type": "definition", "offset": [261, 273]}], "size": 1, "samples": [{"hash": "5unjN7VTLZU", "uri": "/contracts/5unjN7VTLZU#security-subordination", "label": "Transaction Agreement (Nord Anglia Education, Inc.)", "score": 26.4045174538, "published": true}], "snippet": "This Note is a general unsecured obligation of the Borrower. This Note shall be subordinate in right of payment and security to any indebtedness for borrowed monies from any senior lender, and the Lender agrees to execute any reasonable subordination agreement requested by any such senior lender.", "hash": "0acccdd50da7be838aa1dde0fc2acbf6", "id": 8}, {"snippet_links": [{"key": "section-71", "type": "clause", "offset": [3, 14]}, {"key": "section-72", "type": "clause", "offset": [127, 138]}, {"key": "identification-of-collateral", "type": "clause", "offset": [140, 168]}, {"key": "section-73", "type": "clause", "offset": [242, 253]}, {"key": "supporting-letters-of-credit", "type": "clause", "offset": [255, 283]}, {"key": "section-74", "type": "clause", "offset": [355, 366]}], "size": 1, "samples": [{"hash": "2NvrT78gsMp", "uri": "/contracts/2NvrT78gsMp#security-subordination", "label": "Consignment Agreement (MATERION Corp)", "score": 27.6563997262, "published": true}], "snippet": "26 Section 7.1. Collateral. ............................................................................................... 26 Section 7.2. Identification of Collateral. .................................................................... 26 Section 7.3. Supporting Letters of Credit. .................................................................. 27 Section 7.4.", "hash": "2df08166c1fc3fa88e73d845df77918e", "id": 9}, {"snippet_links": [{"key": "the-obligations", "type": "clause", "offset": [0, 15]}, {"key": "this-note", "type": "clause", "offset": [26, 35]}, {"key": "executed-by", "type": "clause", "offset": [99, 110]}, {"key": "the-obligors", "type": "clause", "offset": [111, 123]}, {"key": "in-favor-of", "type": "clause", "offset": [124, 135]}, {"key": "rights-of-the", "type": "clause", "offset": [154, 167]}, {"key": "the-security-agreement", "type": "clause", "offset": [191, 213]}, {"key": "notwithstanding-anything-to-the-contrary", "type": "clause", "offset": [215, 255]}, {"key": "the-indebtedness", "type": "clause", "offset": [257, 273]}, {"key": "the-subordination-agreement", "type": "clause", "offset": [357, 384]}, {"key": "indebtedness-of", "type": "clause", "offset": [450, 465]}], "size": 1, "samples": [{"hash": "3HmQ4AwQPu3", "uri": "/contracts/3HmQ4AwQPu3#security-subordination", "label": "Intercreditor Agreement (Bell Industries Inc /New/)", "score": 20.0, "published": true}], "snippet": "THE OBLIGATIONS DUE UNDER THIS NOTE ARE SECURED BY A SECURITY AGREEMENT (THE \u201cSECURITY AGREEMENT\u201d) EXECUTED BY THE OBLIGORS IN FAVOR OF PAYEE. ADDITIONAL RIGHTS OF THE PAYEE ARE SET FORTH IN THE SECURITY AGREEMENT. Notwithstanding anything to the contrary, the Indebtedness evidenced by this Note is hereby expressly subordinated in the manner set forth in the Subordination Agreement. This Note will rank senior to all existing and future unsecured indebtedness of Maker.", "hash": "09399748ec28fecfcc97fa9557730813", "id": 10}], "next_curs": "Cl8SWWoVc35sYXdpbnNpZGVyY29udHJhY3RzcjsLEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2Ih9zZWN1cml0eS1zdWJvcmRpbmF0aW9uIzAwMDAwMDBhDKIBAmVuGAAgAA==", "clause": {"size": 37, "parents": [["miscellaneous", "Miscellaneous"], ["severability", "Severability"], ["saturdays-sundays-holidays-etc", "Saturdays, Sundays, Holidays, etc"]], "children": [["security-documents", "Security Documents"], ["collateral", "Collateral"], ["intercreditor-agreements", "Intercreditor Agreements"], ["identification-of-collateral", "Identification of Collateral"], ["supporting-letters-of-credit", "Supporting Letters of Credit"]], "title": "Security; Subordination", "id": "security-subordination", "related": [["lien-subordination", "Lien Subordination", "Lien Subordination"], ["payment-subordination", "Payment Subordination", "Payment Subordination"], ["agreement-to-pay-subordination", "Agreement to Pay; Subordination", "Agreement to Pay; Subordination"], ["agreement-of-subordination", "Agreement of Subordination", "Agreement of Subordination"], ["subordination-to-mortgage", "Subordination to Mortgage", "Subordination to Mortgage"]], "related_snippets": [], "updated": "2025-07-07T12:37:53+00:00", "also_ask": ["What are the key negotiation levers when determining the priority of security interests?", "Which drafting elements are essential to ensure effective subordination and avoid ambiguity?", "What are the most common legal pitfalls that could render a subordination clause unenforceable?", "How do subordination provisions in this jurisdiction compare to those in other major legal systems?", "What evidence is typically required in court to prove the parties\u2019 intent and enforceability of subordination agreements?"], "drafting_tip": "Specify the ranking of security interests to clarify creditor priority; define subordination terms to prevent disputes; reference applicable laws to ensure enforceability.", "explanation": "The 'Security; Subordination' clause establishes the lender's right to hold a security interest in the borrower's assets and defines the priority of that interest relative to other creditors. In practice, this clause specifies that the lender's claim may be subordinate to certain other debts, meaning that in the event of default or liquidation, other specified creditors will be paid before the lender. This arrangement is often used when multiple lenders are involved, or when a borrower has existing secured obligations. The core function of this clause is to clarify the hierarchy of claims on the borrower's assets, thereby managing risk and expectations among creditors."}, "json": true, "cursor": ""}}