Common use of Conditional Guaranty Clause in Contracts

Conditional Guaranty. Subject to, and effective only upon, the satisfaction (or waiver by the Guarantor) of the Condition, and subject further to the waiver by the Noteholder set forth in Section 3 hereof, Guarantor hereby guarantees, as primary obligor and not merely as a surety, the full and punctual payment and performance when due (whether at stated maturity, upon acceleration or otherwise) of all obligations under the Note, including, without limitation, the principal of and interest on the Note owed by the Sponsor pursuant to the Note (the foregoing being referred to collectively as the “Guaranteed Obligations”). Subject to, and effective only upon, the satisfaction (or waiver by the Guarantor) of the Condition, and subject further to the waiver by the Noteholder set forth in Section 3 hereof, upon the failure by the Sponsor to pay punctually any such amount or perform such obligation, subject to any applicable grace or notice and cure period, the Guarantor agrees that it shall forthwith pay such amount at the place and in the manner specified in the Note.