Common use of Unenforceability of Obligations Clause in Contracts

Unenforceability of Obligations. As a separate undertaking, the Guarantor agrees that, if the Lender cannot recover the Secured Money from the Guarantor under this Agreement or a Collateral Document for any reason, including if a provision of this Agreement or a Collateral Document becomes void or invalid, whether or not that reason is: a) Defect in Authority: a lack of authority by a person acting on behalf of an Obligor; b) Legal Limitation: a legal or other limitation (whether under the Limitation Xxx 0000 or otherwise), disability or incapacity of an Obligor; or c) Death, Bankruptcy or Insolvency: the death, bankruptcy or insolvency of an Obligor, the Guarantor will, as an independent obligation, pay to the Lender on demand the amount which the Lender would otherwise have been able to recover (on a full indemnity basis). This means the Guarantor agrees to be personally liable for repayment of the Loan even if the Lender is prevented, for some technical reason, from enforcing its rights under this Agreement.