First Priority Ranking Clause Samples
The First Priority Ranking clause establishes that a particular party's interest or claim takes precedence over others in relation to specific assets or collateral. In practice, this means that if multiple parties have claims—such as lenders with security interests in the same property—the party with first priority will be paid or satisfied before others in the event of default or liquidation. This clause is essential for clarifying the order of payment and reducing disputes among creditors, thereby providing certainty and security to the party holding the first priority position.
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First Priority Ranking. The Borrower shall cause its payment obligations with respect to the Loans to constitute direct senior secured obligations of the Borrower and to rank no less than pari passu in priority of payment, in right of security (except with respect to Permitted Liens) and in all other respects to all other Indebtedness of the Borrower.
First Priority Ranking. Its payment obligations under the Finance Documents will be secured and have ranking priority (not subject to any other prior ranking or pari passu ranking payment obligations) over the claims of all its other secured, unsecured, subordinated and unsubordinated creditors, except for obligations mandatorily preferred by law applying to companies generally.
First Priority Ranking. The Lessee shall cause its payment obligations with respect to the Rent to constitute direct senior secured obligations of the Lessee and to rank no less than pari passu in priority of payment, in right of security (except with respect to Permitted Liens) and in all other respects to all other payment obligations of the Lessee.