SURETY PROVISIONS Sample Clauses
Surety provisions are contractual clauses that establish the obligations and responsibilities of a surety, who guarantees the performance or payment obligations of one party to another. These provisions typically outline the conditions under which the surety must step in, the extent of the surety’s liability, and the procedures for making a claim against the surety. For example, in a construction contract, a surety might guarantee that a contractor will complete the project or pay subcontractors if the contractor defaults. The core function of surety provisions is to provide financial security and assurance to the beneficiary, mitigating the risk of non-performance or non-payment by the principal party.
SURETY PROVISIONS. In addition to and not in lieu of any other provisions of this Agreement and the other Loan Documents, each Borrower represents, warrants and covenants as follows:
(i) The obligations of each Borrower under the Loan Documents to which it is a party shall be performed without demand by Secured Parties, and shall be unconditional irrespective of the genuineness, validity, regularity or enforceability of any of the Loan Documents, and without regard to any other circumstance which might otherwise constitute a legal or equitable discharge of a surety or a guarantor. Each Borrower hereby waives any and all benefits and defenses under California Civil Code Section 2810 and agrees that by doing so such Borrower shall be liable even if any one or more of the Other Borrowers (“Other Borrowers”) had no liability at the time of execution of the Loan Documents, or thereafter ceases to be liable. Each Borrower hereby waives any and all benefits and defenses under California Civil Code Section 2809 and agrees that by doing so such Borrower’s liability may be larger in amount and more burdensome than that of any one or more of the Other Borrowers. Each Borrower hereby waives the benefit of all principles or provisions of law, statutory or otherwise, which are or might be in conflict with the terms of this Agreement and agrees that such Borrower’s obligations shall not be affected by any circumstances, whether or not referred to in this Agreement which might otherwise constitute a legal or equitable discharge of a surety or a guarantor. Each Borrower hereby waives the benefits of any right of discharge under any and all statutes or other laws relating to guarantors or sureties and any other rights of sureties and guarantors thereunder.
(ii) In accordance with Section 2856 of the California Civil Code, each Borrower hereby waives all rights and defenses arising out of an election of remedies by Secured Parties even though that election of remedies, such as a nonjudicial foreclosure with respect to security for guaranteed obligations, has destroyed or otherwise impaired such Borrower’s rights of subrogation and reimbursement against the principal by the operation of Section 580d of the California Code of Civil Procedure or otherwise. Each Borrower hereby authorizes and empowers each of the Secured Parties to exercise, in its sole and absolute discretion, any right or remedy, or any combination thereof, which may then be available, since it is the intent and purpose of such ...
SURETY PROVISIONS. Debtor hereby:
(a) waives (i) presentment, demand, notice of nonpayment, protest and notice of protest on the Secured Obligations; and (ii) notice of the creation or incurrence of the Secured Obligations;
(b) agrees that Secured Party may from time to time, without notice to Debtor, which notice is hereby waived by Debtor, extend, renew or compromise the Secured Obligations, in whole or in part, without releasing, extinguishing or affecting in any manner whatsoever the security interest granted hereunder, the foregoing acts being hereby consented to by Debtor;
(c) agrees that Secured Party shall not be required to first resort for payment to any other person, entity or corporation, their properties or estates, or any other right or remedy whatsoever, prior to enforcing this Security Agreement;
(d) agrees that this Security Agreement shall be construed as a continuing, absolute and unconditional agreement without regard to (i) the validity, regularity or enforceability of the Secured Obligations, or the disaffirmance thereof in any insolvency or bankruptcy proceeding relating to the Debtor, or (ii) any event or any conduct or action of the Secured Party or any other party, which might otherwise constitute a legal or equitable discharge of a surety or of the security interest granted hereunder but for this provision;
(e) agrees that this Security Agreement shall remain in full force and effect and be binding upon Debtor until the credit expires and the Secured Obligations are paid in full;
(f) agrees that Secured Party is expressly authorized to renew, extend, compromise, exchange, release or surrender any or all collateral and security pledged by the Debtor or any other party to Secured Party to secure all or any part of the Secured Obligations, with or without consideration and without notice to Debtor and without in any manner affecting the security interest granted hereunder; and that the security interest granted hereunder shall not be affected or impaired by any failure, neglect or omission on the part of Secured Party to realize upon the Secured Obligations, or upon any collateral or security therefor, not by the taking by Secured Party of any other security agreement or guaranty to secure the Secured Obligations of any other indebtedness of the Debtor to Secured Party, nor by any act or failure to act whatsoever which but for this provision might or could in law or in equity act to release the security interest granted hereunder;
(g) agrees that the ...