Voidable Preference; Fraudulent Conveyance Clause Samples
The "Voidable Preference; Fraudulent Conveyance" clause is designed to address and prevent transactions that could be reversed or challenged in bankruptcy or insolvency proceedings. It typically applies to transfers of assets or payments made by a debtor to a creditor shortly before bankruptcy, which may be deemed unfair to other creditors or intended to defraud them. By outlining the parties' rights and obligations if such transactions are later voided or set aside, this clause helps allocate risk and ensures that all parties are aware of the potential consequences of certain pre-bankruptcy actions.
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Voidable Preference; Fraudulent Conveyance. If at any time any payment, or portion thereof, made by, or for the account of, the Guarantor(s) on account of any of the obligations and liabilities hereunder is set aside by any court or trustee having jurisdiction as a voidable preference or fraudulent conveyance or must otherwise be restored or returned by the County under any insolvency, bankruptcy or other federal and/or state laws or as a result of any dissolution, liquidation or reorganization of the Borrower or upon, or as a result of, the appointment of any receiver, intervenor or conservator of, or trustee or similar officer for, the Borrower or any substantial part of its properties or assets, the Guarantor hereby agrees that this Guaranty shall continue and remain in full force and effect or be reinstated, as the case may be, all as though such payments) had not been made.
Voidable Preference; Fraudulent Conveyance. If at any time any payment, or portion thereof, made by, or for the account of, the Borrower on account of any of the obligations and liabilities hereunder is set aside by any court or trustee having jurisdiction as a voidable preference or fraudulent conveyance or must otherwise be restored or returned by the County under any insolvency, bankruptcy or other federal and/or state laws or as a result of any dissolution, liquidation or reorganization of the Borrower or upon, or as a result of, the appointment of any receiver, intervenor or conservator of, or trustee or similar officer for, the Borrower or any substantial part of its properties or assets, the Borrower hereby agrees that this Loan and Note shall continue and remain in full force and effect or be reinstated, as the case may be, all as though such payments had not been made.
Voidable Preference; Fraudulent Conveyance. This Agreement shall continue to be effective or be reinstated, as the case may be, if at any time, and from time to time, payment, or any part thereof, by Borrower, is rescinded or must otherwise be restored or returned by NCBDC upon the insolvency, bankruptcy or reorganization of Borrower or otherwise, all as though such payment had not been made. In addition, if at any time any payment, or portion thereof, made by, of for the account of, the Guarantor on account of any of the obligations and liabilities hereunder is set aside by any court or trustee having jurisdiction as a voidable preference or fraudulent conveyance or must otherwise be restored or returned by NCBDC under any insolvency, bankruptcy or other federal and/or state laws or as a result of any dissolution, liquidation or reorganization of the Borrower or upon, or as a result of, the appointment of any receiver, intervenor or conservator of, or trustee or similar officer for, the Borrower or any substantial part of its properties or assets, or any other Guarantor, if there shall be more than one, the Guarantor hereby agrees that this Agreement shall continue and remain in full force and effect or be reinstated, as the case may be, all as though such payments(s) had not been made.