Common use of Subordinate Nature of Participating Interest Clause in Contracts

Subordinate Nature of Participating Interest. The Sponsor hereby agrees that its participating interest in the Loans purchased by the Sponsor pursuant to Section 4.01 shall be subordinate in all respects to the interest in such Loans retained by the holders (other than the Sponsor) thereof (the “Retained Interest”), so that all payments received or collected on account of such Loans and applied to the payment or termination thereof, whether received or collected through repayment of such Loans by the Borrower or through right of set-off with respect thereto or realization upon any collateral security therefor or otherwise, shall first be applied to the payment of the principal, interest, fees and other amounts then due (whether at its stated maturity, by acceleration or otherwise) on the Retained Interest until such principal, interest, fees and other amounts are paid in full, before any such payments are applied on account of the Sponsor’s participating interest (if any) in such Loans.

Subordinate Nature of Participating Interest. The Sponsor hereby agrees that its participating interest in the Loans purchased by the Sponsor it pursuant to Section 4.01 4.1 shall be subordinate in all respects to the interest in such Loans retained by the holders (other than the Sponsor) thereof (the “"Retained Interest”"), so that all payments received or collected on account of such Loans and applied to the payment or termination thereof, whether received or collected through repayment of such Loans by the Borrower or through right of set-off with respect thereto or realization upon any collateral security therefor or otherwise, shall first be applied to the payment of the principal, interest, fees and other amounts then due (whether at its stated maturity, by acceleration or otherwise) on the Retained Interest until such principal, interest, fees and other amounts are paid in full, before any such payments are applied on account of the Sponsor’s 's participating interest (if any) in such Loans.