Trust Preferred Securities Guarantee Clause Samples
The Trust Preferred Securities Guarantee clause establishes the obligation of a guarantor, typically a parent company, to ensure the payment of certain financial obligations associated with trust preferred securities issued by a subsidiary trust. In practice, this means that if the trust is unable to make required payments, such as interest or principal, the guarantor will step in to fulfill those obligations to the holders of the securities. This clause provides investors with additional assurance and credit support, thereby reducing the risk of non-payment and enhancing the attractiveness of the securities.
Trust Preferred Securities Guarantee. The Guarantor irrevocably and unconditionally agrees to pay in full to the Holders the Guarantee Payments (without duplication of amounts theretofore paid by the Trust), as and when due, regardless of any defense, right of set-off or counterclaim that the Trust may have or assert. The Guarantor's obligation to make a Guarantee Payment may be satisfied by direct payment of the required amounts by the Guarantor to the Holders or by causing the Trust to pay such amounts to the Holders.
Trust Preferred Securities Guarantee. 11 Section 5.1 Trust Preferred Securities Guarantee................................................. 11 Section 5.2 Subordination........................................................................ 11 Section 5.3 Waiver Of Notice And Demand.......................................................... 11 Section 5.4 Obligations Not Affected............................................................. 11 Section 5.5
Trust Preferred Securities Guarantee