Subordination Events Clause Samples
The Subordination Events clause defines specific circumstances under which certain debts or claims are ranked below others in terms of repayment priority. In practice, this clause outlines events—such as defaults, insolvency, or breaches of agreement—that trigger the subordination of one party’s rights to payment, meaning their claims will only be satisfied after senior obligations are fulfilled. Its core function is to establish a clear hierarchy among creditors, thereby managing risk and ensuring that senior lenders are paid first in adverse situations.
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Subordination Events. The Borrower will not engage or permit any Affiliate to engage in any activities relating to any Obligor and/or with respect to any Loan that would subject a Loan to the risk of (i) equitable subordination under Section 510(c) of the Bankruptcy Code, or (ii) recharacterization as an equity security under Section 105(a) of the Bankruptcy Code or otherwise, as a result of the conduct of the Borrower, the Servicer, the Originator or any of their respective Affiliates (items (i), and (ii) above, each a “Subordination Event”).
Subordination Events. The Servicer will not engage or permit any Affiliate to engage in any activities relating to any Obligor and/or with respect to any Loan that would subject a Loan to the risk of a Subordination Event.
Subordination Events. (a) In this Agreement, "Borrower in Insolvency" means the occurrence with respect to the Borrower of:
Subordination Events. The Seller will not engage or permit any Affiliate to engage in any activities relating to any Obligor and/or with respect to any Purchased Collateral Debt Obligation that would subject a Purchased Collateral Debt Obligation to the risk of (i) equitable subordination under Section 510(c) of the Bankruptcy Code, or (ii) recharacterization as an equity security under Section 105(a) of the Bankruptcy Code or otherwise, as a result of the conduct of the Seller, the Servicer, the Investment Manager, the Buyer or any of their respective Affiliates.
Subordination Events. The Borrower will not engage or permit any Affiliate to engage in any activities relating to any Obligor and/or with respect to any Loan Asset that would subject a Loan Asset to the risk of (i) equitable subordination under Section 510(c) of the Bankruptcy Code, or (ii) recharacterization as an equity security under Section 105(a) of the Bankruptcy Code or otherwise, as a result of the conduct of the Borrower, the Manager, the Performance Guarantor or any of their respective Affiliates (items (i), and (ii) above, each a “Subordination Event”); it being understood and agreed that a restructuring of a Loan Asset, either in or out of court, may result in the Borrower holding equity securities of an Obligor.
Subordination Events. The Servicer will not engage in any activities relating to any Obligor and/or with respect to any Collateral Debt Obligation that would subject a Collateral Debt Obligation to the risk of a Subordination Event.
Subordination Events. Until the Senior Debt is Discharged, if:
(a) any resolution is passed or order made for the winding-up, liquidation, dissolution or administration of either the Borrower or HoldCo;
(b) either the Borrower or HoldCo assigns its assets for the benefit of its creditors or enters into any arrangement or composition for the benefit of (or a particular type of) its creditors, or a moratorium is agreed or declared in respect of any of its indebtedness;
(c) either the Borrower or HoldCo becomes subject to any insolvency, bankruptcy, reorganisation, receivership or administration (whether relating to all or only some of its assets and whether or not resulting from the enforcement of any of the Security Documents), liquidation, dissolution or other similar proceeding whether voluntary or involuntary (and whether or not involving insolvency);
(d) either the Borrower or HoldCo becomes subject to any mandatory distribution of its assets or has a Receiver appointed with respect to any of its assets (whether or not resulting from the enforcement of the Security Documents); or
(e) an analogous event to any of the foregoing occurs in any country or territory in which either the Borrower or HoldCo is incorporated or carries on any business, then the following provisions of this Clause 11 shall apply.
Subordination Events. The Manager will not engage in any activities relating to any Obligor and/or with respect to any Loan Asset that would subject a Loan Asset to the risk of a Subordination Event.
Subordination Events. If:-
(a) any resolution is passed or order made for the winding-up, bankruptcy, liquidation, dissolution, administration or reorganisation of any Obligor; or
(b) any Obligor becomes subject to any insolvency, bankruptcy, reorganisation, administration, receivership (whether relating to all or some only of its assets and whether or not resulting from the enforcement of any of the Security Documents), liquidation, dissolution or other similar proceeding whether voluntary or involuntary (and whether or not involving insolvency); or
(c) any Obligor assigns its assets for the benefit of its creditors or enters into any composition or arrangement with its creditors generally or any arrangement is ordered or declared whereby its affairs and/or assets are submitted to the control of, or are protected from, its creditors; or
(d) any Obligor becomes subject to any distribution of its assets in consequence of insolvency, bankruptcy, reorganisation, liquidation, dissolution, examination or administration; or
(e) any event analogous to any of the foregoing shall occur in relation to any Obligor or its assets in any jurisdiction; the provisions of Clauses 10.2 (Subordination), 10.3 (Filing of Claims) and 10.4 (Distributions) shall apply.
Subordination Events. Until the Senior Debt is Discharged, if:
(a) any order is made or resolution passed for the suspension of payments, a moratorium of any indebtedness, winding-up, dissolution, administration or A08005565 7 reorganisation (by way of voluntary arrangement, scheme of arrangement or otherwise) of the Borrower; or
(b) the Borrower enters into any composition, assignment or arrangement with its creditors generally; or
(c) any liquidator, receiver, administrator, administrative receiver, compulsory manager or other similar officer is appointed in respect of the Borrower or any of its assets: or
(d) any Security over any assets of the Borrower is enforced; or
(e) any analogous event occurs in any jurisdiction, this Clause 6 shall apply.