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

SUBORDINATION OF THE DISTRICT COUNCIL SECURITY AGREEMENT. 7.01 The District Council acknowledges and agrees that the Security Interest will rank subordinate to security interests of the following: chartered bank, trust company or other recognized lending institution; government funded financiers, and (subject to the prior written approval of the District Council) other lenders or financiers who specifically require priority providing project financing in respect of the Production. Specifically in respect of the Production the District Council hereby acknowledges and agrees that its Security Interest hereunder ranks subordinate to the security interests, whether registered or otherwise, of the secured parties set out in the security agreement with respect to the Debtor and the Collateral.