Subordinating Party definition
Examples of Subordinating Party in a sentence
This Subordination Agreement and Limited Lien Waiver: (1) binds the Subordinating Party and its heirs, agents, assigns, and successors with respect to the interests that the Subordinating Party and such other persons have, or may have, in the property or against any person having an interest in the property; and (2) inures in favor of the United States and its assigns of any kind.
The Trustee shall not be liable to any such holder if it shall pay over or distribute to or on behalf of Holders of Securities or a Subordinating Party, or any other Person, moneys or assets to which any holder of Senior Indebtedness shall be entitled by virtue of this Article Sixteen.
Such Subordinating Party may resume payments on the Securities when full payment of amounts then due for principal (premium, if any), sinking funds and interest on such Senior Indebtedness has been made or duly provided for in money or money’s worth.
No payment by a Subordinating Party on account of principal (or premium, if any), sinking funds or interest, if any, on the Securities or Guarantees thereof shall be made at any time if: (i) a default on the applicable Senior Indebtedness exists that permits the holders of such Senior Indebtedness to accelerate its maturity and (ii) the default is the subject of judicial proceedings or such Subordinating Party has received notice of such default.
Notwithstanding any other provision of this Agreement, to the extent that any payments on the Subordinated Debt that are not permitted hereunder are received by the Subordinating Party in any manner from any of the assets or property of the Borrower and its Subsidiaries, all the payments and amounts will be held in trust by the Subordinating Party for the benefit of Bank and will be paid over to Bank to apply in the order and manner that the Bank may choose.
Borrower and Subordinating Party have requested that Bank extend credit to Borrower, but Bank is willing to do so T and only it all of the indebtedness owing or to become owing by Borrower to Subordinating Party, and all collateral for such indebtedness, are expressly subordinated to any and all indebtedness now or hereafter owing to Bank by Borrower and all collateral therefor.
Each Subordinating Party agrees to cooperate with any and all requests by L▇▇▇▇▇ in connection with any such Bankruptcy Proceedings and to do such other acts and things and deliver, or cause to be delivered, such other documents as Lender may reasonably request to effect the intent and purpose of this Section 10.6.
Should any payment, any dividend or other distribution be received by the Subordinating Party in any bankruptcy, receivership, liquidation or other proceeding on account of the Subordinated Debt, such payment, dividend or other distribution will be held by such Subordinating Party in trust for Bank and will be paid over to Bank to apply to the Obligations in the order and the manner that Bank may choose.
If the Subordinating Party shall receive any payments, security interests, or other rights in any property of the Borrower and its Subsidiaries in violation of this Agreement, such payment or property shall be received by such Subordinating Party in trust for the Bank and, upon the Subordinating Party’s receipt of such payment or property, the same shall be promptly delivered and transferred by the Subordinating Party to the Bank to apply to the Obligations in the order and manner that the Bank may choose.
Each Subordinating Party has full corporate power and authority to enter into and perform its obligations under the Subordination Agreement.