Common use of Second Lien Indebtedness Clause in Contracts

Second Lien Indebtedness. Permission for second lien indebtedness will be considered by Agent and subject to approval by the Requisite Lenders and upon such approval shall be deemed to be Permitted Debt. Any second Lien facility will be subject to an Intercreditor Agreement which shall include, but not be limited to, payment and lien priority provisions, procedures governing enforcement which will permit Lenders to exercise remedies with respect to the Collateral and other reasonable usual and customary terms included in intercreditor arrangements between senior debt and second lien debt holders. One hundred percent (100%) of the net proceeds of any permitted second lien facility must be paid to the Lenders and applied as a permanent reduction against the Loans and Commitments.,