Subordinated Obligation Sample Clauses
A Subordinated Obligation clause establishes that certain debts or obligations are ranked below others in terms of repayment priority. In practice, this means that if the debtor faces liquidation or bankruptcy, the subordinated obligations will only be paid after all senior debts have been satisfied. This clause is commonly used in financing arrangements to protect senior lenders by ensuring their claims are addressed first, thereby allocating risk and clarifying the order of payment in the event of insolvency.
Subordinated Obligation a) The rights of the Holder under this Note shall be subject to and subordinate to the rights of the holders of any secured indebtedness of the Company.
b) The rights of trade creditors of the Company under trade payables incurred in the ordinary course of business shall be subject to and subordinate to the rights of the Holder under this Note.
Subordinated Obligation. This Note is a subordinated general obligation of the Company and, pursuant to the terms and conditions of the Subordination Agreement, is specifically subordinate in all ways to any Senior Debt now or hereafter created, issued made or outstanding, to or held by any Secured Parties. The Holder specifically agrees to provide such additional documentation as any of such Secured Parties shall reasonably believe may be necessary to protect, defend or perfect such secured status.
Subordinated Obligation. +1 (C) if such Collateral Obligation is not rated by S&P but there is a public issuer credit rating of the issuer of such Collateral Obligation by S&P as published by S&P, or the guarantor which unconditionally and irrevocably guarantees such Collateral Obligation, then such issuer credit rating will at the election of the Collateral Manager be determined in accordance with subclause (i)(B) (for such purposes, treating such public issuer credit rating as if it were a rating of a parallel security); or (D) if such Collateral Obligation is a DIP Collateral Obligation, no ▇▇▇▇▇’▇ Rating or Moody’s Default Probability Rating may be determined based on a rating by S&P or any other rating agency; (ii) if such Collateral Obligation is not rated by Moody’s or S&P and no other security or obligation of the issuer of such Collateral Obligation is rated by Moody’s or S&P, and if Moody’s has been requested by the Issuer, the Collateral Manager or the issuer of such Collateral Obligation to assign a rating or rating estimate with respect to such Collateral Obligation but such rating or rating estimate
Subordinated Obligation. 21 Subsidiary.....................................................................................21
Subordinated Obligation. The rights of the Lender under this Note are subject to and subordinate to the rights of the holders of the Secured Debentures pursuant to the Subordination Agreement.
Subordinated Obligation. Other than the Company’s obligation to redeem this Debenture pursuant to Section 6, the obligations of the Company under this Debenture are subordinated to the obligations of the Company owed to Iliad Research and Trading, L.P. (“Iliad”), pursuant to a Secured Convertible Promissory Note, dated May 8, 2018, by and between the Company and Iliad.
Subordinated Obligation. (i) Neither Borrower nor any Guarantor shall, directly or indirectly, make or permit any payment to be made in respect of any indebtedness, claims, rights, liabilities, or obligations, direct or contingent, including, without limitation, the Subordinated Debt (as hereinbelow defined), to any of its shareholders or other Affiliates or their respective successors and assigns (hereinafter each referred to as a "Subordinated Party"), and payment of any or all of the Subordinated Debt is hereby expressly made subordinate and junior in right of payment and satisfaction in full of each and every Senior Obligation (as hereinbelow defined); provided, however, that for so long as no Default or Event of Default exists with respect to the Senior Obligations and payment of any such Subordinated Debt would not render Borrower or any Guarantor insolvent or subject to any voluntary or involuntary bankruptcy, receivership, liquidation, reorganization, arrangement, assignment for the benefit of its creditors, or any similar proceedings or occurrence, such Subordinated Debt may be repaid in the ordinary course of Borrower's or the applicable Guarantor's business under such regularly scheduled payment terms as are approved in writing by Lender.
(ii) Except as otherwise expressly provided in Section (i) above, until each and every Senior Obligation has been paid and otherwise satisfied in full, Borrower shall not make any payment of cash or its equivalent or any transfer of securities or other property of any kind or character to any Subordinated Party in respect of any of the Subordinated Debt.
(iii) In the event of (A) any insolvency, bankruptcy, receivership, liquidation, reorganization, arrangement, assignment for the benefit of creditors, or other similar proceeding relative to Borrower or any Guarantor, any of Borrower's or a Guarantor's assets, or any Subordinated Party; or (B) any proceeding for the voluntary or involuntary liquidation, dissolution, or other winding up of Borrower or any Guarantor, whether or not in connection with insolvency or bankruptcy proceedings, then and in any such event:
(1) The principal amount of, and all interest and premium on, and all other amounts in respect of, the Senior Obligations (including interest thereon accruing after the commencement of any such proceeding) shall be paid in full before any payment or distribution of any character, whether in cash, securities, or other property, may be made in respect of the Subordinated Debt;
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