Common use of Default; Collateral Clause in Contracts

Default; Collateral. Upon the occurrence and continuance of a Default, Secured Parties agree to promptly confer in order that Secured Parties may agree upon a course of action for the enforcement of the rights of Secured Parties; provided that any Secured Party shall be entitled (but not obligated) to proceed to take any actions necessary in its reasonable judgment to preserve rights, pending agreement by Secured Parties on the course of action to be taken. Any and all agreements to subordinate (whether made heretofore or hereafter) other indebtedness or obligations of Borrower to the indebtedness under the Lender Agreements shall be construed as being for the benefit of each Secured Party to the extent of its respective Pro Rata Share. If one Secured Party acquires any security for the indebtedness under its respective Lender Agreement upon or in lieu of foreclosure, the same shall be held for the benefit of all Secured Parties in proportion to their respective Pro Rata Share.