Common use of Subordination after Default Clause in Contracts

Subordination after Default. The Lender and the Rural Center may agree to the subordination of amounts (both principal and interest) owed to the Rural Center under certain circumstances. Such subordination shall be effective only if noted on both the relevant the Commitment Letter and Participation Certificate. If the Lender and the Rural Center so agree, the amounts owed by the Lender to the Rural Center with respect to a Participation shall be subordinated to amounts owed by the Borrower to the Lender from and after the occurrence of all of the following events: (i) the occurrence of any default under any of the applicable Loan Documents; (ii) notice thereof to the Rural Center; (iii) acceleration of the applicable Loan; and (iv) commencement and continuation of foreclosure proceedings and other collection efforts, which shall include enforcing all guaranties with respect thereto. However, in any foreclosure proceeding where the Lender is the successful bidder at the foreclosure sale and the sale results in a loss to either the Lender and/or the Rural Center, or if Lender otherwise acquires title to such property in lieu of a foreclosure, such as by a deed in lieu of foreclosure, and in any such case the Lender subsequently sells the foreclosed or otherwise acquired property within twelve (12) months thereafter for a gain or profit in excess of the value of the loan, the Lender is obligated to remit a pro rata share of said gain or profit equal to the Rural Center Participation Amount within thirty (30) calendar days thereafter. This also applies to any situation where the Lender takes judicial or non-judicial ownership of collateral assets for subsequent disposition. Breach of any of the Covenants or requirements specified in Sections 6.5, 6.6, or 6.7 renders all subordination null and void as of the date of the breach. Unless a new subordination agreement is executed in writing by the Lender and the Rural Center, any amounts recovered upon the Borrower’s default are to be distributed on a pro rata basis equal to the Rural Center Participation Amount, plus recovered interest and fees if any.

Subordination after Default. The Lender and the Rural Center GHFA EDFI may agree to the subordination of amounts (both principal and interest) owed to the Rural Center GHFA EDFI under certain circumstances. Such subordination shall be effective only if noted on both the relevant the Commitment Letter and Participation Certificate. If the Lender and the Rural Center GHFA EDFI so agree, the amounts owed by the Lender to the Rural Center GHFA EDFI with respect to a Participation shall be subordinated to amounts owed by the Borrower to the Lender from and after the occurrence of all of the following events: (i) the occurrence of any default under any of the applicable Loan Documents; (ii) notice thereof to the Rural CenterGHFA EDFI; (iii) acceleration of the applicable Loan; and (iv) commencement and continuation of foreclosure proceedings and other collection efforts, which shall include enforcing all guaranties with respect thereto. However, in any foreclosure proceeding where the Lender is the successful bidder at the foreclosure sale and the sale results in a loss to either the Lender and/or the Rural CenterGHFA EDFI, or if Lender otherwise acquires title to such property in lieu of a foreclosure, such as by a deed in lieu of foreclosure, and in any such case the Lender subsequently sells the foreclosed or otherwise acquired property within twelve (12) months thereafter for a gain or profit in excess of the value of the loan, the Lender is obligated to remit a pro rata share of said net gain after expenses or profit equal to the Rural Center GHFA EDFI Participation Amount within thirty (30) calendar days thereafter. This also applies to any situation where the Lender takes judicial or non-judicial ownership of collateral assets for subsequent disposition. Breach of any of the Covenants or requirements specified in Sections 6.54.15 (h), 6.6, or 6.7 (i) and (j) renders all subordination null and void as of the date of the breach. Unless a new subordination agreement is executed in writing by the Lender and the Rural CenterGHFA EDFI, any amounts recovered upon the Borrower’s default are to be distributed on a pro rata basis equal to the Rural Center GHFA EDFI Participation Amount, plus recovered interest and fees if any.

Subordination after Default. The Lender and the Rural Center BDC may agree to the subordination of amounts (both principal and interest) owed to the Rural Center BDC under certain circumstances. Such subordination shall be effective only if noted on both the relevant the Commitment Letter and Participation Certificate. If the Lender and the Rural Center BDC so agree, the amounts owed by the Lender to the Rural Center BDC with respect to a Participation shall be subordinated to amounts owed by the Borrower to the Lender from and after the occurrence of all of the following events: (i) the occurrence of any default under any of the applicable Loan Documents; (ii) notice thereof to the Rural CenterBDC; (iii) acceleration of the applicable Loan; and (iv) commencement and continuation of foreclosure proceedings and other collection efforts, which shall include enforcing all guaranties with respect thereto. However, in any foreclosure proceeding where the Lender is the successful bidder at the foreclosure sale and the sale results in a loss to either the Lender and/or the Rural CenterBDC, or if Lender otherwise acquires title to such property in lieu of a foreclosure, such as by a deed in lieu of foreclosure, and in any such case the Lender subsequently sells the foreclosed or otherwise acquired property within twelve (12) months thereafter for a gain or profit in excess of the value of the loan, the Lender is obligated to remit a pro rata share of said gain or profit equal to the Rural Center BDC Participation Amount within thirty (30) calendar days thereafter. This also applies to any situation where the Lender takes judicial or non-judicial ownership of collateral assets for subsequent disposition. Breach Intentional breach of any of the Lender’s Covenants or requirements specified in Sections 6.5, 6.6, or 6.7 renders all subordination null and void as of the date of the breach. Unless a new subordination agreement is executed in writing by the Lender and the Rural CenterBDC, any amounts recovered upon the Borrower’s default are to be distributed on a pro rata basis equal to the Rural Center BDC Participation Amount, plus recovered interest and fees if any.

Subordination after Default. The Lender and the Rural Center Authority may agree to the subordination of amounts (both principal and interest) owed to the Rural Center Authority under certain circumstances. Such subordination shall be effective only if noted on both the relevant the Commitment Authority Approval Letter and Participation Certificate. If the Lender and the Rural Center Authority so agree, the amounts owed by the Lender to the Rural Center Authority with respect to a Participation shall be subordinated to amounts owed by the Borrower to the Lender from and after the occurrence of all of the following events: (i) the occurrence of any default under any of the applicable Loan Documents; (ii) notice thereof to the Rural CenterAuthority; (iii) acceleration of the applicable Loan; and (iv) commencement and continuation of foreclosure proceedings and other collection efforts, which shall include enforcing all guaranties with respect thereto. However, in any foreclosure proceeding where the Lender is the successful bidder at the foreclosure sale and the sale results in a loss to either the Lender and/or the Rural Center, or if Lender otherwise acquires title to such property in lieu of a foreclosure, such as by a deed in lieu of foreclosureAuthority, and in any such case the Lender subsequently sells the foreclosed or otherwise acquired property within twelve (12) months thereafter for a gain or profit in excess of the value of the loanprofit, the Lender is obligated to remit a pro rata share of said gain or profit equal to the Rural Center Authority Participation Amount within thirty (30) calendar days thereafter. This also applies to any situation where the Lender takes judicial or non-judicial ownership of collateral assets for subsequent disposition. Breach of any of the Covenants or requirements specified in Sections 6.5, 6.6, or 6.7 renders all subordination null and void as of the date of the breach. Unless a new subordination agreement is executed in writing by the Lender and the Rural CenterAuthority, any amounts recovered upon the Borrower’s default are to be distributed on a pro rata basis equal to the Rural Center Authority Participation Amount, plus recovered interest and fees if any.