Changes Relating to Subordinated Notes Sample Clauses
The "Changes Relating to Subordinated Notes" clause defines the rules and procedures for making amendments or modifications to the terms of subordinated notes within a financial agreement. Typically, this clause outlines who has the authority to propose or approve changes, such as the issuer, noteholders, or a trustee, and may specify the types of changes that require consent or special procedures. For example, it might distinguish between minor administrative updates and significant alterations to payment terms or ranking. The core function of this clause is to ensure that any changes to the rights and obligations associated with subordinated notes are made transparently and with appropriate stakeholder involvement, thereby protecting the interests of all parties and maintaining the integrity of the agreement.
Changes Relating to Subordinated Notes. Borrower may not agree to any change or amendment to the terms of the Subordinated Notes (or any indenture or agreement in connection therewith) if the effect of such change or amendment is to: (a) increase the interest rate on the Subordinated Notes, (b) change the dates upon which payments of principal or interest are due on the Subordinated Notes other than to extend such dates, (c) change any default or event of default or covenant other than to delete or make less restrictive any default or covenant provision therein, or add any covenant with respect to the Subordinated Notes, (d) change the redemption or prepayment provisions of such the Subordinated Notes other than to extend the dates therefor or to reduce the premiums payable in connection therewith, (e) grant any security, collateral or guaranty to secure payment of the Subordinated Notes, or (f) change or amend any other term if such change or amendment would materially increase the obligations of the obligor or confer additional material rights to the holder of the Subordinated Notes in a manner adverse to Borrower, Agent, or any Lender.