Subordinate Obligations Sample Clauses
The Subordinate Obligations clause establishes that certain obligations under the agreement are ranked below others in terms of priority for performance or payment. In practice, this means that if a party is required to fulfill multiple obligations, those designated as subordinate will only be addressed after the primary or senior obligations have been satisfied. For example, in a loan agreement, repayment to a subordinate lender would occur only after the senior lender has been paid in full. This clause is essential for clarifying the order of priority among obligations, thereby reducing disputes and managing risk among parties with competing interests.
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Subordinate Obligations. Borrower shall not voluntarily prepay any principal (including the making of any sinking fund payment), interest or any other amount in respect of Subordinate Obligations.
Subordinate Obligations. Subordinate any Debt due to it from a Person to Debt of other creditors of such Person.
Subordinate Obligations. Nothing in this Master Indenture shall prohibit or prevent HRTAC from authorizing and issuing Subordinate Obligations for any lawful purpose payable from HRTAC Revenues subject and subordinate to the payment of any Bonds and to the deposits required to be made from HRTAC Revenues to the Senior Debt Service Funds, the Debt Service Reserve Funds and the Rebate Funds or any other Fund or Account established to secure any Bonds, or from securing any Subordinate Obligations and their payment by a lien and pledge of HRTAC Revenues junior and inferior to the lien on and pledge thereof for the payment and security of the Bonds; provided, however, that such Subordinate Obligations may only be declared immediately due and payable upon the occurrence of a default thereunder if payment of the Bonds has been accelerated in accordance with Article XIII.
Subordinate Obligations. Nothing in this Master Indenture shall prohibit or prevent NVTC from authorizing and issuing Subordinate Obligations for any lawful purpose payable from Revenues subject and subordinate to the payment of any Bonds and to the deposits required to be made from Revenues to the Debt Service Funds, the Revenue Stabilization Fund and the Debt Service Reserve Funds or any other Fund or Account established to secure any Bonds, or from securing any Subordinate Obligations and their payment by a lien and pledge of Revenues junior and inferior to the lien on and pledge thereof for the payment and security of the Bonds. Any such Subordinate Obligations may only be declared immediately due and payable upon the occurrence of a default thereunder if payment of the Bonds has been accelerated in accordance with Article XIII.
Subordinate Obligations. On or before any date that the payment of principal and interest is due with respect to any Subordinate Obligations, the Agency shall, from moneys in the Revenue Fund, transfer to the applicable trustee or payee for deposit in the applicable payment fund, without preference or priority, and in the event of any insufficiency of such moneys ratably without discrimination or preference, payment on such Subordinate Obligations in accordance with the provisions of such Subordinate Obligation.
Subordinate Obligations. The Pledged Revenues used for the payment 17 of Subordinate Obligations shall be applied first to the payment of the amounts due the Loan 18 Agreement and the Note, including payments to be made to other obligations payable from the 19 Pledged Revenues which have a lien on the Pledged Revenues on parity with the Loan Agreement 20 and the Note. Thereafter, Pledged Revenues shall be applied to the payment of the amounts due on 21 subordinate obligations, if any.
Subordinate Obligations. Nothing herein prohibits or impairs the authority of the District to issue bonds or other obligations payable from or secured by a Lien on Net Revenues (or portion thereof) which is subordinate to the Lien established under this Installment Sale Agreement or other Parity Obligations upon such terms and in such principal amounts as the District may determine; provided, that the District may issue or incur any such Subordinate Obligations subject to the following specific conditions:
(i) The District must be in compliance with all covenants set forth in this Installment Sale Agreement and each other Parity Obligation Instrument (including, but not limited to, covenants relating to the issuance of Subordinate Obligations taking into account such proposed Subordinate Obligations) and no Default or Event of Default shall have occurred or be continuing.
(ii) The Net Revenues of the System, calculated on sound accounting principles, as shown by the books of the District for the latest Fiscal Year or any more recent 12 month period selected by the District ending not more than 60 days prior to the adoption of the Subordinate Obligations Instrument pursuant to which such proposed Subordinate Obligations are issued, as shown by the books of the District, must at least equal 100% of Maximum Annual Debt Service, with Maximum Annual Debt Service calculated on this Installment Sale Agreement and all other Parity Obligations and all other System Obligations to be outstanding immediately subsequent to the issuance of such Subordinate Obligations which are payable from or have a Lien on Net Revenues of the System.
(iii) The Subordinate Obligations Instrument providing for the issuance of Subordinate Obligations must provide that:
(A) The proceeds of such Subordinate Obligations must be applied to the acquisition, construction, improvement, financing or refinancing of additional facilities, improvements or extensions of existing facilities within the System, or otherwise for facilities, improvements or property which the District determines are of benefit to the System, or for the purpose of refunding any Parity Obligations and Subordinate Obligations in whole or in part, including all costs (including costs of issuing such Subordinate Obligations and including capitalized interest on such Subordinate Obligations during any period which the District deems necessary or advisable) relating thereto;
(B) Interest on such Subordinate Obligations must be payable on a Parity Inter...
Subordinate Obligations. Upon acceptance by and conveyance to the District from a Builder of District Funded Public Improvements, the District shall (to the extent such conveyance does not occur contemporaneous with the issuance of a series of District Bonds in an amount sufficient to fund the Acquisition Amount for all the District Funded Public Improvements or the delivery of the corresponding Acquisition Amount to the Developer from the proceeds of the District Special Levy) immediately deliver one or more Subordinate Obligations to the Developer memorializing the District’s current obligation to pay the Developer the Acquisition Amount for those improvements from the revenues of the District Special Levy and/or the proceeds of District Bonds, subject to the Reimbursement Cap. The authorization and issuance of Subordinate Obligations by the District, which memorialize that District’s obligation to pay an Acquisition Amount in accordance with this Agreement, shall not be subject to further City Council approval.
Subordinate Obligations. Nothing in this Indenture shall prevent Issuer from authorizing and issuing notes, bonds, debentures, debenture anticipation notes, warrants, certificates or other obligations or evidences of indebtedness, the payment of the principal of and premium, if any, and interest on which shall be made from Revenues or from a special fund to be established and maintained from Revenues; provided, that, payments from Revenues or from a special fund to be established and maintained from Revenues, and the lien and charge on such Revenues, shall be made junior and subordinate to the lien, pledge and charge created herein for the security and payment of the Debentures and other payments under this Indenture, including, without limitation, the following payments out of Revenues into the Debenture Fund. Nothing contained herein shall prohibit Issuer from incurring debt in the ordinary course of business for the purchase or lease of furniture, fixtures and other equipment (including vehicles) for use by Issuer; provided, that, such debt shall be subordinate to the provisions of this Indenture and may be secured only by a purchase money security interest in the furniture, fixtures and equipment so acquired. Notwithstanding anything herein to the contrary, no Subordinate Obligations shall be issued unless there is no Event of Default at the time of issuance under this Indenture.
Subordinate Obligations. Subordinate any indebtedness due to it from a Person to indebtedness of other creditors of such Person.