Subordinate Notes Sample Clauses
The Subordinate Notes clause establishes that certain notes or debt instruments are ranked below other specified debts in terms of repayment priority. In practice, this means that if the issuer faces liquidation or bankruptcy, holders of subordinate notes will only be repaid after all senior obligations have been satisfied. This clause is commonly used in structured finance or corporate debt arrangements to attract different classes of investors and manage risk allocation. Its core function is to clearly define the order of payment priority, thereby allocating risk among creditors and providing transparency regarding potential recoveries in adverse situations.
Subordinate Notes. The Subordinate Noteholders hereby designate the Note B-1 Holder to be the Subordinate Noteholder having the sole right to (x) receive any notices which are required to be given or which may be given to the Subordinate Noteholders and/or (y) send any notices which are required or permitted to be given or which may be given by the Subordinate Noteholders hereunder, including any approval rights, cure rights, purchase option rights or other rights of any Subordinate Noteholder set forth in this Agreement.
Subordinate Notes. The Supplemental NPA pursuant to which any Series of Subordinate Notes is issued shall specify whether or not the Subordinate Notes of such Series will be unsecured or entitled to the benefits of a second priority Lien on the Collateral, subject to Section 1.5. A second lien collateral agent shall be appointed pursuant to any Supplemental NPA in respect of any Series of Subordinate Notes that will be entitled to a second priority Lien on the Collateral, such second lien collateral agent shall enter into a joinder to the Intercreditor Agreement and such Series of Subordinate Notes shall be subject to the terms of the Intercreditor Agreement. Any Series of unsecured Subordinate Notes shall be subject, notwithstanding any provision hereof or of any Supplemental NPA to the contrary, to the terms of a subordination agreement substantially in the form of Exhibit J or any other form of subordination agreement satisfactory to the Required Holders (any such subordination agreement actually entered into, the “Subordination Agreement”). If at any time a Default or an Event of Default has occurred and is continuing, holders of Subordinate Notes shall not be entitled to any vote hereunder, other than in respect of matters related exclusively to Subordinate Notes, as provided in Section 18, or as expressly provided in the Intercreditor Agreement or Subordination Agreement, as applicable; provided that this restriction on voting will cease to apply once all Senior Notes outstanding have been repaid in full in cash and cancelled.
Subordinate Notes. The Subordinate Notes shall be subordinated to the payment of the Senior Notes on terms set forth in the applicable Subordination Agreement and the guarantee under this Section 13 of any Subordinate Notes shall be subject to the terms of such Subordination Agreement, mutatis mutandis.
Subordinate Notes. If the maximum amount of TIF Bonds possible is insufficient to refund any TIF Notes, then such amounts will become or be reissued as Subordinate Notes and will be fully subordinated as to both principal and interest to the TIF Bonds. The Subordinate Notes shall have the same outstanding principal amount as the TIF Notes that they redeem or replace, shall have a stated maturity equal to the longest period permissible under the TIF Act and shall bear interest at the fixed rate of 8.00% per annum.