Common use of Subordination May Not Be Impaired Clause in Contracts

Subordination May Not Be Impaired. No right of any present or future holder of Senior Debt to enforce the subordination of the obligations with respect to this Note shall be prejudiced or impaired by any act or failure to act by the Borrower or by any act or failure to act or waiver of any terms of this Note, by any such holder, or by any noncompliance by the Borrower with the terms of the subordination provisions of this Note, regardless of any knowledge thereof which any such holder may have or be otherwise charged with. The holder of the Senior Debt may extend, renew, modify or amend the terms of the Senior Debt or any security therefor and release, sell or exchange such security and otherwise deal freely with the Borrower, all without the consent of or notice to, and without affecting the liabilities and obligations of, the Borrower or the registered holder. No provision in any supplemental agreement or document which modifies the subordination provisions of this Note or otherwise affects the superior position of the holder of the Senior Debt shall be effective against the holder of the Senior Debt if such holder has not consented thereto in accordance with the provisions of the document governing such Senior Debt.