Common use of Subordination of Indebtedness of Borrower Clause in Contracts

Subordination of Indebtedness of Borrower. Guarantor agrees that any Debt now or in the future owed to it by Borrower or by any other guarantor is hereby subordinated in right of payment to their prior payment in full in cash of the Obligations. Without limiting the generality of the foregoing, if the Security Agent so requests, any such Debt shall be collected, enforced and received by Guarantor as trustee for the Secured Parties and shall be paid over to the Security Agent (for the benefit of the Secured Parties) in kind on account of the Obligations, upon the occurrence and during the continuation of an Event of Default. If, after request by the Security Agent, upon the occurrence and during the continuation of an Event of Default, Guarantor fails to collect or enforce any such indebtedness or to pay the proceeds of that indebtedness to the Security Agent, the Security Agent as Guarantor’s attorney-in-fact may, upon the occurrence and during the continuation of an Event of Default, do such acts and sign such documents in Guarantor’s name and on Guarantor’s behalf as the Security Agent considers necessary or desirable to effect that collection, enforcement or payment, the Security Agent being hereby appointed Guarantor’s attorney-in-fact for that purpose (and such appointment is irrevocable and is coupled with an interest) and in accordance with Section 12 of this Agreement.