Senior Creditor Actions Clause Samples
The 'Senior Creditor Actions' clause defines the rights and procedures by which senior creditors may take action to enforce their claims under a financing arrangement. Typically, this clause outlines the circumstances under which senior creditors can initiate enforcement steps, such as demanding repayment, pursuing collateral, or commencing legal proceedings, often requiring coordination among multiple creditors. Its core practical function is to establish a clear hierarchy and process for creditor actions, thereby preventing conflicts and ensuring that senior creditors' interests are prioritized in the event of borrower default.
Senior Creditor Actions. No Senior Creditor may:
(a) demand payment of any Senior Debt;
(b) accelerate any of the Senior Debt or otherwise declare any of the Senior Debt prematurely due or payable on an Event of Default (or analogous event) or otherwise;
(c) enforce any of the Senior Debt by attachment, set-off, execution or otherwise;
(d) enforce (or give instructions to the Security Agent to enforce) the Security;
(e) petition for (or vote in favour of any resolution for) or initiate, support or take any steps with a view to any Insolvency or any voluntary arrangement or assignment for the benefit of creditors or any similar proceedings involving an Obligor;
(f) ▇▇▇ or bring any legal proceedings against any Obligor (or any of its subsidiaries);
(g) otherwise exercise any remedy for the recovery of any Senior Debt; or
(h) ▇▇▇ or bring support proceedings against or make demand on any Report Provider in connection with the Reports or receive payment from any of the Report Providers in connection with any such suit, proceedings or demand, unless either (a) agreed by an Instructing Group; or (b) an Enforcement Event has occurred in respect of the Senior Debt provided by that Senior Creditor and the Authorised Representative of that Senior Debt is entitled to give instructions to enforce the Bank Security pursuant to clause 10.1(a)(ii).