Notes Unsecured Clause Samples
The "Notes Unsecured" clause establishes that the notes issued under the agreement are not backed by any collateral or specific assets of the issuer. In practice, this means that holders of the notes are considered general creditors and have no priority claim over any particular property if the issuer defaults. This clause clarifies the risk profile for investors, ensuring they understand that their claims are not secured and that they may be subordinate to other creditors with secured interests, thereby allocating risk and setting expectations regarding repayment priority.
Notes Unsecured. Except as otherwise required pursuant to Section 2.5 hereof, the Notes are not secured by any collateral.
Notes Unsecured. The Notes are general unsecured obligations of the Company limited to up to $250,000,000 aggregate principal amount. The Indenture does not limit other indebtedness of the Company, secured or unsecured.