Common use of Reinstatement of Rights Clause in Contracts

Reinstatement of Rights. 63.1 Under law, a trustee in bankruptcy or liquidator may ask the Lender to refund or retransfer a payment or transfer the Lender has received in connection with the Agreement. To the extent the Lender is obliged to, or it agrees to, make a refund or retransfer, it may treat the original payment or transfer as if it had not been made. The Lender is then entitled to its rights against the Borrower and the Guarantor under the Agreement as if the payment or transfer had never been made and, if the Lender asks, the Borrower and the Guarantor must do everything necessary to restore to the Lender any Security Interest the Lender held immediately prior to the payment or transfer.