Separate Obligations and Liens Sample Clauses
The "Separate Obligations and Liens" clause establishes that each party's obligations and any liens arising under the agreement are distinct and not combined with those of other parties. In practice, this means that if one party incurs a debt or a lien, it does not automatically affect the obligations or property of another party involved in the contract. For example, if a lien is placed on one party's assets due to their failure to perform, it does not extend to the assets of other parties. This clause's core function is to protect parties from being held responsible for the debts or encumbrances of others, ensuring clear separation of liabilities and reducing the risk of unintended financial exposure.
Separate Obligations and Liens. Borrower acknowledges and agrees that (i) the Obligations represent separate and distinct indebtedness, obligations and liabilities of Borrower to each of Secured Parties, which Borrower is separately obligated to each Secured Party to pay and perform, in each case regardless of whether or not any indebtedness, obligation or liability to any other Secured Party or any other person or entity, or any agreement, instrument or guaranty that evidences any such other indebtedness, liability or obligation, or any provision thereof, shall for any reason be or become void, voidable, unenforceable or discharged, whether by payment, performance, avoidance or otherwise; (ii) the Lien that secures each of Secured Parties’ respective Obligations (A) is separate and distinct from any and all other Liens on the Collateral, (B) is enforceable (subject to applicable bankruptcy and similar laws) without regard to whether or not any other Lien shall be or become void, voidable or unenforceable or the indebtedness, obligations or liabilities secured by any such other Lien shall be discharged, whether by payment, performance, avoidance or otherwise, and (C) shall not merge with or be impaired by any other Lien (subject to applicable bankruptcy and similar laws).
Separate Obligations and Liens. The Company acknowledges and agrees that, subject to Section 5: (a) the Secured Obligations represent separate and distinct indebtedness, obligations and liabilities of the Company to each of the Purchasers, which the Company is separately obligated to each Purchaser to pay and perform, in each case regardless of whether or not any indebtedness, obligation or liability to any other Purchaser or any other person or entity, or any agreement, instrument or guaranty that evidences any such other indebtedness, liability or obligation, or any provision thereof, shall for any reason be or become void, voidable, unenforceable or discharged, whether by payment, performance, avoidance or otherwise; and (b) the Lien that secures each Purchaser’s respective Secured Obligations (i) is separate and distinct from any and all other Liens on the Collateral, (ii) is enforceable without regard to whether or not any other Lien shall be or become void, voidable or unenforceable or the indebtedness, obligations or liabilities secured by any such other Lien shall be discharged, whether by payment, performance, avoidance or otherwise, and (iii) shall not merge with or be impaired by any other Lien.