Common use of SUBORDINATION OF THE DISTRICT COUNCIL SECURITY AGREEMENT Clause in Contracts

SUBORDINATION OF THE DISTRICT COUNCIL SECURITY AGREEMENT. Pursuant to paragraph 7 of the standard security terms, the District Council agrees that its Security Interest will rank subordinate to the security interests of the parties listed in paragraph 3. The intent of this provision is that generally, the security interests of the following parties, will enjoy priority over the District Council’s security interest: chartered banks, trust companies or other recognized lending institutions, government funded financiers, and subject to the prior written approval of the District Council, other lenders or financiers who specifically require priority and who are providing project financing in respect of the Production.