Subordination to Senior Indebtedness Sample Clauses
The Subordination to Senior Indebtedness clause establishes that certain debts or obligations are ranked below others, specifically designating some as 'junior' to 'senior' indebtedness. In practice, this means that if the borrower defaults or enters bankruptcy, the senior debt holders are paid in full before any payments are made to holders of subordinated debt. This clause is commonly used in loan agreements or bond issuances to protect senior lenders by ensuring their claims take priority. Its core function is to allocate risk among creditors and provide clarity on the order of repayment, thereby facilitating lending arrangements where multiple layers of debt exist.
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Subordination to Senior Indebtedness. (a) Indemnitee agrees that all amounts payable by the Guarantors to Indemnitee hereunder shall be subordinated in right of payment to the prior Payment in Full of all Senior Indebtedness (whether outstanding on the date hereof or hereafter created, incurred, assumed or guaranteed) as provided in this SECTION 3.04.
(b) In the event of any payment or distribution of assets during any Insolvency Proceeding of a Guarantor, subject to any insolvency laws governing the Insolvency Proceeding:
(i) holders of Senior Indebtedness shall first be entitled to receive Payment in Full of all Obligations, if any, due from such Guarantor in respect of such Senior Indebtedness (including interest after the commencement of any such Insolvency Proceeding at the rate specified in the documentation for the applicable Senior Indebtedness) or provision shall be made for such amount in cash, or other payments satisfactory to all of the holders of Senior Indebtedness (such satisfaction to be evidenced in writing by such holders of Senior Indebtedness), before Indemnitee shall be entitled to receive any payment hereunder;
(ii) until all Obligations with respect to Senior Indebtedness (as provided in clause (i) above) are Paid in Full, any distribution to which Indemnitee would be entitled, but for this SECTION 3.04, shall be made to the Senior Agent.
Subordination to Senior Indebtedness. In addition to the subordination and other provisions contained in any subordination or intercreditor agreement, Borrower, Collateral Agent and Lenders agree that the payment of all amounts payable hereunder and under the Subordinated Secured Promissory Note are expressly subordinated in right of payment to the payment when due of all obligations under the Senior Indebtedness.
Subordination to Senior Indebtedness. The payment of the ------------------------------------ principal of and interest on this Debenture is hereby expressly made subordinate and junior in right of payment to the prior payment in full of all principal of and interest on all Senior Indebtedness (as defined below) whether now outstanding or hereafter incurred, created or assumed.
Subordination to Senior Indebtedness. The indebtedness evidenced ------------------------------------ by this Note, and the payment of the principal hereof and any interest hereon, is wholly subordinated,
Subordination to Senior Indebtedness. The Company covenants and agrees, and each holder of a Note, by his or her acceptance thereof, likewise covenants and agrees, that all Notes shall be issued subject to the provisions of this Article IV and to the extent and in the manner hereinafter set forth in this Article IV, the indebtedness represented by the Notes and the payment of the principal amount, Conversion Price, and interest thereon, Company Conversion Provisional Payment, Additional Conversion Payment, redemption price for Notes called for redemption in accordance with Section 3.2, the Repurchase Price and Additional Repurchase Payment, if any, with respect to Notes submitted for repurchase in accordance with Section 16.1, liquidated damages, fees, expenses or any other amounts in respect of each and all of the Notes are hereby expressly made subordinate and junior and subject in right of payment to the prior payment in full in cash of all Senior Indebtedness of the Company now outstanding or hereinafter incurred. "
Subordination to Senior Indebtedness. The indebtedness evidenced by this Note, and the payment of the principal hereof, and any interest hereon, is wholly subordinated, and junior and subject in right of payment, to the extent and in the manner hereinafter provided, to the prior payment of all Senior Indebtedness of the Company now outstanding or hereinafter incurred. "Senior Indebtedness" means the principal of, and premium, if any, and interest on (i) all indebtedness of the Company for monies borrowed from banks, trust companies, insurance companies and other financial institutions, including commercial paper, (ii) principal of, and premium, if any, and interest on any indebtedness or obligations of others of the kinds described in (i) above assumed or guaranteed in any manner by the Company, (iii) deferrals, renewals, extensions and refundings of any such indebtedness or obligations described in (i) and (ii) above, and (iv) any other indebtedness of the Company which the Company and the Holder may hereafter from time to time expressly and specifically agree in writing shall constitute Senior Indebtedness.
Subordination to Senior Indebtedness. The indebtedness evidenced by the Subordinated Securities of any series, including their principal and the interest on them, will be subordinate and subject in right of payment, to the extent and in the manner set forth in this Article Eleven, to the prior payment in full of all Senior Indebtedness, and each Holder by accepting the Subordinated Securities agrees to and will be bound by, and deemed to have notice of all provisions of this Indenture including this Article Eleven.
Subordination to Senior Indebtedness. This Agreement is subject to the terms of the Subordination Agreement, which agreement is incorporated herein by reference. Notwithstanding any statement to the contrary contained in this Agreement, no remedies shall be pursued, except in accordance with the terms of such agreement. Notwithstanding the incorporation by reference of the Subordination Agreement, Borrowers acknowledge that no other parties, including any Borrower or any of their successors or assigns, are intended to be benefited, in any way, by the Subordination Agreement. If MTM refinances or renegotiates the Senior Indebtedness or replaces it with other Senior Indebtedness, Investment Manager and Lender hereby agree to enter into any subordination agreement requested by any Person or Persons who are MTM's Senior Lenders or agents therefor, pursuant to which Investment Manager and Lender agree to subordinate their respective rights and interests hereunder and under the Note and the liens securing same to such Person, on terms consistent with or no less favorable to Investment Manager and Lender than those contained in the Subordination Agreement and the subordination agreement of even date herewith by and between Investment Manager and Ingram. 41
Subordination to Senior Indebtedness. The indebtedness evidenced by, and payment of the principal of and interest on, the Notes shall be subordinate and subject in right of payment to the extent and in the manner set forth in this Section 9 to the prior payment in full of all Senior Indebtedness.
Subordination to Senior Indebtedness. The Company covenants and agrees, and each holder of a Note, by his or her acceptance thereof, likewise covenants and agrees, that all Notes shall be issued subject to the provisions of this Article IV and to the extent and in the manner hereinafter set forth in this Article IV, the indebtedness represented by the Notes and the payment of the principal amount, Conversion Price, and interest thereon, liquidated damages or any other amounts in respect of each and all of the Notes are hereby expressly made subordinate and junior and subject in right of payment to the prior payment in full of all Senior Indebtedness of the Company now outstanding or hereinafter incurred. "