General Creditor Protections Sample Clauses
The General Creditor Protections clause establishes safeguards to ensure that creditors' rights are preserved and prioritized in the event of a debtor's insolvency or financial distress. Typically, this clause outlines the order in which creditors are paid, clarifies that certain assets or funds are not earmarked for specific creditors, and may restrict the debtor from taking actions that would unfairly disadvantage general creditors. By doing so, it helps maintain fairness among all creditors and prevents preferential treatment, thereby reducing the risk of disputes and ensuring an orderly process in the event of liquidation or bankruptcy.
General Creditor Protections. Nothing in Section 8(a) shall restrict the exercise by Counterparty of any Default Right against Dealer with respect to this Confirmation or any other Relevant Agreement that arises as a result of:
(i) Dealer becoming subject to an Insolvency Proceeding; or
(ii) Dealer not satisfying a payment or delivery obligation pursuant to (A) this Confirmation or any other Relevant Agreement, or (B) another contract between Dealer and Counterparty that gives rise to a Default Right under this Confirmation or any other Relevant Agreement.
General Creditor Protections. Nothing in Section 31(b) shall restrict the exercise by Party B of any Default Right against Party A with respect to this Agreement or any other Relevant Agreement that arises as a result of:
(i) Party A becoming subject to an Insolvency Proceeding; or
(ii) Party A not satisfying a payment or delivery obligation pursuant to (A) this Agreement or any other Relevant Agreement, or (B) another contract between Party A and Party B that gives rise to a Default Right under this Agreement or any other Relevant Agreement.
General Creditor Protections. Nothing in Section (2) shall restrict the exercise by Counterparty of any Default Right against CEI with respect to a Relevant Agreement that arises as a result of (a) CEI becoming subject to an Insolvency Proceeding; (b) CEI not satisfying a payment or delivery obligation pursuant to such Relevant Agreement or another contract between CEI and Counterparty that gives rise to a Default Right under such Relevant Agreement; or (c) the failure of a Citi Affiliate Support Provider, or any Transferee thereof, to satisfy a payment or delivery obligation pursuant to any Citi Affiliate Credit Enhancement that supports this Agreement or any QFC hereunder.