Subsequent Subsidiary Guarantors Clause Samples
The 'Subsequent Subsidiary Guarantors' clause requires that any subsidiaries acquired or formed by the borrower after the initial agreement must also become guarantors under the loan or credit facility. In practice, this means that if the borrower expands its corporate group by creating or acquiring new subsidiaries, those entities are obligated to provide guarantees for the borrower's obligations, typically by executing a joinder or similar document. This clause ensures that the lender's security and recourse are maintained as the borrower's corporate structure evolves, preventing the borrower from moving assets into new subsidiaries that are not subject to the lender's claims.
Subsequent Subsidiary Guarantors. As a condition to the effectiveness of any subsequent Subsidiary Guaranty, each subsequent Subsidiary Guarantor shall deliver such documents, agreements, instruments and opinions as the Administrative Agent shall reasonably require as to such Subsidiary Guarantor that are analogous to the deliveries made by the Borrower as of the Closing Date pursuant to §10.2 through §10.4 and §10.8. For avoidance of doubt, this §10A is not considered a part of §10 for purposes of this Agreement.
Subsequent Subsidiary Guarantors. Subject to Article Sixteen, the Company and the Parent Guarantor shall cause each Person that falls within the definition of Subsequent Subsidiary Guarantor to become a Guarantor hereunder and thereby to fully and unconditionally guarantee the due and punctual payment of the principal of, interest on and any other amounts payable under the Securities, when and if the same shall become due and payable, whether at the Stated Maturity, by declaration of acceleration, upon redemption, repurchase or repayment or otherwise, by execution of an indenture supplemental hereto that adds such Person as a Subsequent Subsidiary Guarantor.