Subrogation to Rights of Senior Lenders Clause Samples
The 'Subrogation to Rights of Senior Lenders' clause establishes that, under certain circumstances, a party—typically a junior lender or guarantor—may assume the rights and remedies of senior lenders after the senior lenders have been repaid in full. In practice, this means that if a junior lender pays off the senior debt, they can step into the shoes of the senior lender and enforce the same claims or security interests against the borrower. This clause ensures that junior lenders have a mechanism to recover their funds and provides a clear order of priority, preventing disputes over who has the right to pursue the borrower or collateral after senior obligations are satisfied.
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Subrogation to Rights of Senior Lenders. Subject to, and solely effective following, the Payment in Full of all Senior Obligations, Junior Creditor shall be subrogated to the rights of the Senior Lenders to receive payments and distributions of cash, property and securities applicable to the Senior Obligations to the extent of the payments or distributions made to any Senior Lender, or otherwise applied to payment of, the Senior Obligations pursuant to the provisions of this Section 8, until the principal of and the interest on the Junior Obligations shall be paid in full in cash. For purposes of such subrogation, no payments or distributions on account of or with respect to the Senior Obligations to the Senior Lenders of any cash, property or securities to which Junior Creditor would be entitled except for the provisions of this Agreement, and no payments over pursuant to the provisions of this Agreement to any of the Senior Lenders by Junior Creditor shall, as among any Borrower, its creditors (other than the Senior Lenders) and Junior Creditor, be deemed to be a payment or distribution by any Borrower to or on account of the Senior Obligations.
Subrogation to Rights of Senior Lenders. Subject to the Payment In Full of all Issuer Indebtedness, the Purchasers shall be subrogated to the rights of the holders of Issuer Indebtedness to receive payments and distributions of cash, property and securities applicable to the Issuer Indebtedness until the Obligations shall be paid in full. For purposes of such subrogation, no payments or distributions to the holders of Issuer Indebtedness of any cash, property or securities to which the Purchasers would be entitled except for the provisions of this Article XIV, and no payments over pursuant to the provisions of this Article XIV to the holders of Issuer Indebtedness by the Purchasers shall, as among the Issuer, its creditors (other than holders of the Issuer Indebtedness), and the Purchasers be deemed to be a payment or distribution by the Issuers to or on account of the Obligations.