Subordination by Creditor Sample Clauses

Subordination by Creditor. On no more than a single occasion and upon the written request of Debtor, Creditor shall subordinate its security interest in the Collateral to a security interest that Debtor may propose to grant to an institutional lender to secure a new loan to Debtor in a principal amount of not less than $1,000,000. Such subordination shall have the effect only of making Creditor's security interest in the Collateral junior to the security interest granted to such new lender notwithstanding the priority of the perfection of Creditor's security interest and shall not otherwise affect any of Creditor's rights under the Note or this Security Agreement.
View SourceView Similar (3)
Subordination by Creditor. Notwithstanding any contrary provision of the California Uniform Commercial Code or any other applicable law (including without limitation provisions governing the time or order of attachment or perfection of security interests, the time or order of filing of UCC Financing Statements or the giving or failure to give notice of the acquisition of purchase-money or other security interests), but subject to the other terms and conditions of this Agreement, the security interest of Creditor in and to the Shared Collateral shall be, and shall continue to be, subject, subordinate and inferior to the security interest of Bank therein, but only with respect to the Senior Bank Obligations.
View Source
Subordination by Creditor. Creditor hereby unconditionally and irrevocably subordinates to the Bank (i) payment by the Debtor of all or any part of the Subordinated Debt to the payment of all Senior Debt; and (ii) all security interests, liens, interests and rights (whether consensual or by operation of law) in or against the Collateral now or hereafter securing the Subordinated Debt. The Creditor agrees that the Bank's security interest, lien and rights to the Collateral are superior to those of the Creditor notwithstanding the date, manner or order of perfection of the security interest, lien or claim of the Bank or the Creditor, the Bank's failure to perfect its security interest, or any provisions of any other agreements between the Creditor and the Bank regarding the Debtor or Collateral to the contrary. Except as provided in Section 3 of this Agreement or until all Senior Debt has been paid in full and the Bank has no further obligation to make loans to the Debtor, the Creditor hereby agrees not to: (a) demand payment of, ▇▇▇ for, or receive all or any part of the Subordinated Debt; (b) request, obtain or alter any subordinate security interest, lien, right or interest in the Collateral to secure the Subordinated Debt after the date of this Agreement; (c) amend any terms of the agreements representing the Subordinated Debt; (d) set off any amount of the Subordinated Debt against any obligations owed by the Creditor to the Debtor; (e) take any action against the Collateral securing payment of the Subordinated Debt; (f) assert against the Bank any claim pursuant to the doctrine of marshalling assets or under the United States Bankruptcy Code with respect to any of the Collateral or the Senior Debt; (g) receive any amounts from the Debtor respecting any ownership of the Debtor (including, without limitation, dividends); or (h) commence or participate in the commencement of any bankruptcy, insolvency or reorganization proceedings against the Debtor, or vote in such proceedings against the Debtor, or vote in such proceedings in a manner inconsistent with the provisions hereof.
View Source

Related to Subordination by Creditor

  • SUBORDINATION OF AGREEMENT 18.1 The parties hereto and the employees of the City are governed by the provisions of applicable Federal Law, State Law, and the City Charter. When any provisions thereof are in conflict with the provisions of this Agreement, the provisions of said Federal Law, State Law, or City Charter are paramount and shall prevail. 18.2 The parties hereto and the employees of the City are governed by applicable City Ordinances and said Ordinances are paramount except where they conflict with the express provisions of this Agreement.

  • Reliance by Holders of Senior Indebtedness on Subordination Provisions (a) Each Holder by accepting a Security of any series acknowledges and agrees that the foregoing subordination provisions are, and are intended to be, an inducement and a consideration to each holder of any Senior Indebtedness of the Issuer, whether such Senior Indebtedness was created or acquired before or after the issuance of the Securities, to acquire and continue to hold, or to continue to hold, such Senior Indebtedness and such holder of such Senior Indebtedness shall be deemed conclusively to have relied on such subordination provisions in acquiring and continuing to hold, or in continuing to hold, such Senior Indebtedness. (b) Without in any way limiting the generality of paragraph (a) of this Section, the holders of Senior Indebtedness may, at any time and from time to time, without the consent of or notice to the Trustee or the Holders, without incurring responsibility to the Holders and without impairing or releasing the subordination provided in this Article Four or the obligations hereunder of the Holders to the holders of Senior Indebtedness, do any one or more of the following: (1) change the manner, place or terms of payment or extend the time of payment of, or renew or alter, Senior Indebtedness or any instrument evidencing the same or any agreement under which Senior Indebtedness is outstanding; (2) sell, exchange, release or otherwise deal with any property pledged, mortgaged or otherwise securing Senior Indebtedness; (3) release any Person liable in any manner for the collection of Senior Indebtedness; and (4) exercise or refrain from exercising any rights against the Issuer, any Guarantor or any other Person.

  • SUBORDINATION OF NOTES Section 11.01.

  • Subordination of Liens Notwithstanding the date, time, manner or order of filing or recordation of any document or instrument or grant, attachment or perfection of any Liens granted to the Second-Priority Secured Parties on the Common Collateral or of any Liens granted to the Intercreditor Agent or the Senior Lenders on the Common Collateral and notwithstanding any provision of the UCC, or any applicable law or the Second-Priority Documents or the Senior Lender Documents or any other circumstance whatsoever, each Second-Priority Agent, on behalf of itself and each applicable Second-Priority Secured Party, hereby agrees that: (a) any Lien on the Common Collateral securing any Senior Lender Claims now or hereafter held by or on behalf of the Intercreditor Agent or any Senior Lenders or any agent or trustee therefor regardless of how acquired, whether by grant, statute, operation of law, subrogation or otherwise, shall have priority over and be senior in all respects and prior to any Lien on the Common Collateral securing any Second-Priority Claims, (b) any Lien on the Common Collateral securing any Second-Priority Claims now or hereafter held by or on behalf of the Trustee, the Collateral Agent or any Second-Priority Secured Parties or any agent or trustee therefor regardless of how acquired, whether by grant, statute, operation of law, subrogation or otherwise, shall be junior and subordinate in all respects to all Liens on the Common Collateral securing any Senior Lender Claims and (c) with respect to any Second-Priority Claims (and as between the Second-Priority Agents and the Second-Priority Secured Parties), the Liens on the Common Collateral securing any Second-Priority Claims now or hereafter held by or on behalf of the Trustee, the Collateral Agent or any Second-Priority Secured Party or any agent or trustee therefor regardless of how acquired, whether by grant, statute, operation of law, subrogation or otherwise, shall rank equally and ratably in all respects. All Liens on the Common Collateral securing any Senior Lender Claims shall be and remain senior in all respects and prior to all Liens on the Common Collateral securing any Second-Priority Claims for all purposes, whether or not such Liens securing any Senior Lender Claims are subordinated to any Lien securing any other obligation of the Company, any other Grantor or any other Person.

  • Subordination Unimpaired This Indenture may not be amended to alter the subordination of any of the Outstanding Securities without the written consent of each holder of Senior Indebtedness then outstanding that would be adversely affected thereby.