Subordinated Debenture Sample Clauses
A Subordinated Debenture clause defines a debt instrument that ranks below other debts in terms of claims on assets or earnings in the event of liquidation. This means that if the issuer defaults or is liquidated, holders of subordinated debentures are paid only after senior debt holders have been satisfied. Such clauses typically apply to unsecured bonds issued by corporations or financial institutions, often used to raise capital while leaving senior debt obligations unaffected. The core function of this clause is to clarify the priority of repayment, thereby allocating risk among creditors and making the terms of debt obligations transparent.
Subordinated Debenture. The subordinated debenture of $5,000,000 outstanding at March 31, 2000 and 1999 is payable to others and guaranteed by the Small Business Administration ("SBA"), bears interest at 8.0% and matures in 2002.
Subordinated Debenture. In consideration for a loan by Seller to Purchaser of $2.6 million (separate and in addition to the Purchased Assets and any cash included therein), Purchaser shall issue to Seller a Subordinated Promissory Note in the form attached hereto as Exhibit C (the “Note”). The Seller shall send the proceeds of the Note by wire transfer directly to the parties indicated on Schedule 2.5, in the amounts indicated thereon. Schedule 2.5 shall indicate that $1,803,000 of the Note proceeds (of which $3,000 shall constitute the Escrow Agent’s fee) shall be sent by wire transfer directly to LaSalle Bank National Association, as escrow agent (the “Escrow Agent”). Such funds shall be held in escrow in accordance with the Escrow Agreement substantially in the form attached hereto as Exhibit A (the “Escrow Agreement”).