Secured Obligation definition
Examples of Secured Obligation in a sentence
The liability of each Co-Obligor hereunder shall be absolute, unlimited and unconditional and shall not be subject to any reduction, limitation, impairment, discharge or termination for any reason, including any claim of waiver, release, surrender, alteration or compromise, and shall not be subject to any claim, defense or setoff, counterclaim, recoupment or termination whatsoever by reason of the invalidity, illegality or unenforceability of any other Secured Obligation or otherwise.
For the avoidance of doubt, to the extent that any Secured Obligation is not secured or paid in full by the Pledgor under this Pledge as a result of the limitation of its liability under this paragraph, then, the Secured Obligation shall continue to be a contingent liability of the Pledgor which shall become secured hereunder by the Pledgor as at the date any such security and/or the payment thereof can, subject to the satisfaction of the Distribution Test, be made from Pledgor’s distributable profits.
Without derogating from the foregoing, if any part of the security granted hereunder is determined to be, in any respect, invalid, illegal or unenforceable, either with respect to a particular item of the Pledged Assets or with respect to any of the Secured Obligations, then the validity, legality and enforceability of such security as against any other part of the Pledged Assets, or in respect of any other Secured Obligation, shall not in any way be affected or impaired thereby.