Subordination; Ranking Clause Samples

The Subordination; Ranking clause establishes the order of priority among different debts or obligations, specifying which claims take precedence over others in the event of payment or liquidation. In practice, this clause may state that certain loans or securities are subordinate to senior debt, meaning they will only be repaid after higher-ranking obligations have been satisfied. This structure is commonly used in financing arrangements to clarify the hierarchy of creditors and manage risk. Its core function is to provide certainty and transparency regarding the repayment order, thereby protecting the interests of senior creditors and facilitating structured financing.
Subordination; Ranking. (a) The Company covenants and agrees, and the Holder by the acceptance of this Note likewise covenants and agrees, that, to the extent and in the manner hereinafter set forth in this Section 10, the indebtedness represented by this Note and the payment of the principal of (and premium, if any) and interest (including any Additional Interest) on this Note are hereby expressly made subordinate and subject in right of payment as provided in this Section 10 to the prior payment in full of all Senior Indebtedness. (b) If the Company shall default in the payment of any principal of (or premium, if any), interest on or other amounts payable in respect of any Senior Indebtedness when the same becomes due and payable, whether at maturity or at a date fixed for prepayment or by declaration of acceleration or otherwise, then, from and after the time of any written notice of such default to the Company by the holders of Senior Indebtedness or any trustee therefor, and unless and until such default shall have been cured or waived or shall have ceased to exist or all amounts then due and payable in respect of such Senior Indebtedness shall have been paid in full, no direct or indirect payment (in cash, property, securities (other than newly issued equity or securities of the Company subordinated to Senior Indebtedness), by set-off or otherwise) shall be made or agreed to be made on account of the principal of (or premium, if any) or interest (including any Additional Interest) on this Note, or in respect of any redemption, repayment, retirement, purchase or other acquisition of this Note. (c) In the event of (a) the entry of a decree or order by a court having jurisdiction in the premises adjudging the Company a bankrupt or insolvent, or approving as properly filed a petition seeking reorganization or winding-up of the Company under the Companies’ Creditors Arrangement Act (Canada), the Bankruptcy and Insolvency Act (Canada) or the Winding-Up Act (Canada) or any other bankruptcy, insolvency or analogous laws, or issuing sequestration or process of execution against the Company or any substantial part of its property, or appointing a receiver of the Company or of any substantial part of its property, or ordering the winding-up or liquidation of its affairs, and the continuance of any such decree or order or appointment unstayed, undischarged and in effect for a period of 60 days from the date thereof; or (b) the institution by the Company of proceedings to be adjudicated...
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Subordination; Ranking. The Notes will be senior unsecured indebtedness of WSFS Financial Corporation, will rank equally with its other senior unsecured indebtedness and will be effectively subordinated to secured indebtedness and structurally subordinated to the indebtedness of its subsidiaries. As of ▇▇▇▇▇ ▇▇, ▇▇▇▇, ▇▇▇▇ had no outstanding secured debt, $55 million in senior unsecured debt and its subsidiaries’ direct borrowings and deposit liabilities totaled approximately $5.0 billion.
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Subordination; Ranking. The indebtedness evidenced by tl1is Note is subordinate and junior in right of payment to the prior payment in full of all claims of depositors and to the Company's other debt obligations to its general and secured creditors, unless such debt obligations are explicitly made pari passu or subordinated to the Subordinated Notes/senior indebtedness of the Company, in accordance with applicable holding company regulations of the Appropriate Federal Banking Agency. The Holder of this Note, by accepting the same agrees to and shall be bound by such provisions. The Holder, by his or her acceptance hereof, hereby waives all notice of the acceptance of the subordination provisions contained herein by each holder of senior indebtedness, whether now outstanding or hereafter incurred and waives reliance by each such holder upon said provisions.
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Subordination; Ranking. The Notes will be senior unsecured indebtedness of the Company, will rank equally with its other senior unsecured indebtedness and will be effectively subordinated to secured indebtedness and structurally subordinated to the indebtedness of its subsidiaries. As of June 30, 2021, the Company had no outstanding secured debt, $124.2 million in senior unsecured debt and its subsidiaries’ direct borrowings and deposit liabilities totaled approximately $17.9 billion.
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Subordination; Ranking. (a) All payments of principal and interest pursuant to this Note shall be subordinated, in the manner and to the extent provided in this Note, to the prior payment in full of all “Senior Indebtedness.” The Company covenants and agrees that, anything herein to the contrary notwithstanding, the indebtedness evidenced by this Note is subordinate and junior in right of payment to all Senior Indebtedness to the extent provided herein, and the Holder of this Note, by such H▇▇▇▇▇’s acceptance hereof, likewise covenants and agrees to the subordination herein provided and shall be bound by the provisions hereof. Senior Indebtedness shall continue to be Senior Indebtedness and entitled to the benefits of these subordination provisions irrespective of any amendment, modification or waiver of any term of the Senior Indebtedness or extension or renewal of the Senior Indebtedness. (b) In the event that the Company shall default in the payment of any principal of (or premium, if any), or interest on, any Senior Indebtedness when the same become due and payable, whether at maturity or at a date fixed for prepayment or by declaration of acceleration or otherwise, then, upon written notice of such default to the Company by the holder(s) of Senior Indebtedness or any trustee therefor, unless and until such default shall have been cured or waived or shall have ceased to exist, no direct or indirect payment (in cash, property, securities, by set-off or otherwise) shall be made or agreed to be made on account of the principal of (or premium, if any), or interest on, this Note, or in respect of any redemption, repayment, retirement, purchase or other acquisition of this Note. (c) In the event of (i) any insolvency, bankruptcy, receivership, liquidation, reorganization, readjustment, composition or other similar proceeding relating to the Company, its creditors or its property, (ii) any proceeding for the liquidation, dissolution or other winding up of the Company, voluntary or involuntary, whether or not involving insolvency or bankruptcy proceedings, (iii) any assignment by the Company for the benefit of creditors, or (iv) any other marshaling of the assets of the Company, all Senior Indebtedness (including any interest thereon, whether accruing before or after the commencement of any such proceedings) shall first be paid in full before any payment or distribution, whether in cash, securities or other property, shall be made to any Holder of this Note on account of the principa...
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Related to Subordination; Ranking

  • Subordination Unimpaired This Indenture may not be amended to alter the subordination of any of the Outstanding Securities without the written consent of each holder of Senior Indebtedness then outstanding that would be adversely affected thereby.

  • SUBORDINATION OF NOTES Section 11.01.

  • Lien Subordination Lender agrees that the Liens granted to it hereunder in Third Party Equipment shall be subordinate to the Liens of current and future lenders providing equipment financing and equipment lessors for equipment and other personal property acquired by Borrower after the date hereof (“Third Party Equipment”); provided that such Liens are confined solely to the equipment so financed and the proceeds thereof and are Permitted Liens. Notwithstanding the foregoing, the Obligations hereunder shall not be subordinate in right of payment to any obligations to other lenders, equipment lenders or equipment lessors and Lender’s rights and remedies hereunder in the Collateral which does not constitute Third Party Equipment shall not in any way be subordinate to the rights and remedies of any such lenders or equipment lessors. So long as no Event of Default has occurred which has not been waived by Lender, Lender agrees to execute and deliver such agreements and documents as may be reasonably requested by Borrower from time to time which set forth the lien subordination described in this Section 4.8 and are reasonably acceptable to Lender. Lender shall have no obligation to execute any agreement or document which would impose obligations, restrictions or lien priority on Lender which are less favorable to Lender than those described in this Section 4.8.

  • Subordination of Debt Until senior debt has been paid in full, Debtor will not pay and Creditor will not accept any payment on subordinated debt at any time that an Event of Default (as defined in the Senior Facility Agreement) has occurred and is continuing in respect of senior debt. Anything of value received by Creditor on account of subordinated debt in violation of this agreement will be held by Creditor in trust and immediately will be turned over to Lender in the form received to be applied by Lender on senior debt.

  • Subordination Terms The payment by the Company of the principal of, premium, if any, and interest on any series of Securities issued hereunder shall be subordinated to the extent set forth in an indenture supplemental hereto relating to such series.