Senior Payments Clause Samples
The Senior Payments clause establishes the priority of certain payments, typically ensuring that senior creditors or obligations are paid before others in the event of limited funds or insolvency. In practice, this clause applies to financial agreements where multiple classes of creditors exist, such as in loan agreements or bond issuances, and it dictates that senior debt holders receive payment ahead of junior or subordinated creditors. Its core function is to allocate risk and provide clarity regarding the order of payment, thereby protecting the interests of senior stakeholders and reducing uncertainty in financial transactions.
Senior Payments. Until the occurrence of the Final Payment Date, each of HoldCo and IPCo shall ensure that its obligations and liabilities under the Transaction Documents constitute its unconditional and general obligations that at all times rank senior to all of its other existing or future Indebtedness; provided, however, that the foregoing requirement that such obligations rank senior to existing or future Indebtedness shall not apply with respect to any Indebtedness incurred where all of the proceeds from such Indebtedness (net of Transaction Expenses) are used to pay the IPCo Note Amount, the Increase Payment, the Liquidity Event Payment, the Make-Whole Payment or the Impact Payment and which Indebtedness is not secured by any Lien on Collateral unless such Lien is subordinated to the Liens of the Security Documents on terms satisfactory to Yahoo! and Softbank.
Senior Payments. The Obligors may pay, repay, redeem or acquire the Senior Liabilities at any time in accordance with the terms of the Senior Finance Documents.