Common use of Treatment of Payment of Subordinated Liabilities Clause in Contracts

Treatment of Payment of Subordinated Liabilities. All payments and distributions received by the Bank in respect of the Subordinated Liabilities, to the extent received in or converted into cash, may be applied by the Bank first to the payment of any and all expenses (including attorneys' fees and disbursements and the allocated fees, expenses and cost of in-house counsel) paid or incurred by the Bank in enforcing this Agreement or in endeavoring to collect or realize upon any of the Subordinated Liabilities, and any balance thereof shall, solely as between the Subordinate Lender and the Bank, be applied by the Bank, in such order of application as the Bank may from time to time select, toward the payment of any of the Senior Liabilities remaining unpaid. As between the Obligors and any of their creditors, no such payments or distributions of any kind or character shall be deemed to be payments or distributions in respect of the Senior Liabilities; and, notwithstanding any such payments or distributions received by the Bank in respect of the Subordinated Liabilities and so applied by the Bank toward the payment of the Senior Liabilities, the Subordinate Lender shall be subrogated to the then existing rights of the Bank, if any, in respect of the Senior Liabilities, only at such time as the Bank shall have received indefeasible payment of the full amount of the Senior Liabilities.