Collateral Priority Sample Clauses
The Collateral Priority clause establishes the order in which parties have claims to collateral in the event of default or liquidation. It typically specifies which creditors or secured parties have first rights to the collateral and how any remaining value is distributed among other claimants. For example, a senior lender may have priority over junior lenders regarding the proceeds from the sale of pledged assets. This clause is essential for clarifying the hierarchy of claims, reducing disputes, and providing certainty to parties about their risk exposure and recovery prospects.
Collateral Priority. The Bank shall have received evidence satisfactory to it that all Loan Documents perfecting the Bank’s security interest in Collateral have been duly recorded and filed and all other action necessary to perfect the Bank’s liens in the Collateral have been taken such that the Bank’s liens shall constitute first priority perfected liens in all Collateral, subject to no other liens or encumbrances unacceptable to the Bank, all to the Bank’s complete satisfaction.
Collateral Priority. The Lenders hereby agree that, as between the Lenders, the Liens created on the Collateral other than the Term Loan Collateral constitute (x) first priority, perfected Liens in favor of the Agent, for the ratable benefit of the Agent and the Revolving Credit Lenders, and (y) second priority, perfected Liens in favor of the Agent, for the ratable benefit of the Agent and the Term Lenders, and the Liens created on the Term Loan Collateral constitute (x) first priority, perfected Liens in favor of the Agent, for the ratable benefit of the Agent and the Term Lenders, and (y) second priority, perfected Liens in favor of the Agent, for the ratable benefit of the Agent and the Revolving Credit Lenders, except in each case for Permitted Liens.
Collateral Priority. Notwithstanding (a) the date, time, method, manner, or order of grant, attachment, or perfection of any Liens now or hereafter granted to the Agents, the Lenders or the Export-Related Lender in respect of all or any portion of the Collateral, (b) any provision of UCC or any other applicable law, or of the Loan Documents or the Export-Related Financing Documents, or (c) any other circumstance of any kind or nature whatsoever, each of the Agents, the Lenders and the Export-Related Lender, herby agree that:
(i) all right, title and interests of the Export-Related Lender in and to the Lender Priority Collateral, including, without limitation, all right, title and interest in and to the Lender Priority Collateral arising under or pursuant to any and all Liens securing the Export-Related Obligations now or hereafter held by or on behalf of the US Collateral Agent or the Export-Related Lender shall in all respects be junior and subordinate to all right, title and interests of the Agents, the Issuing Bank, the Lenders and the Other Secured Parties in and to such Lender Priority Collateral.
(ii) all right, title and interests of the Agents, the Issuing Bank, the Lenders and the Other Secured Parties in and to the Export-Related Priority Collateral, including, without limitation, all right, title and interest in and to the Export-Related Priority Collateral arising under or pursuant to any and all Liens securing the Secured Obligations (other than the Export-Related Obligations) now or hereafter held by or on behalf of any Agent, the Issuing Bank, any Lender or any Other Secured Parties shall in 129 all respects be junior and subordinate to all right, title and interests of the Export-Related Lender in and to such Export-Related Priority Collateral.
Collateral Priority. (a) The Senior Creditors and Junior Creditor have all been granted liens on and/or security in all of the assets of Borrower (the “Collateral”). Notwithstanding (i) the timing, order or method of grant, attachment, recording or perfection of any relative financing statements or other security interests, assignments, pledges, deeds, mortgages and other liens, charges or encumbrances or any defect or deficiency or alleged defect or deficiency in any of the foregoing and (ii) any provision of the Uniform Commercial Code or any applicable law or the Senior Debt Documents, the Subordinated Debt Documents, or the Security Agreement, Junior Creditor acknowledges and agrees that Junior Creditor’s security interest in the Collateral shall be junior and subordinate to the security interest in the Collateral held by the Senior Creditors. Any proceeds received by Junior Creditor on account of its security interest in the Collateral, whether pursuant to a Collateral Enforcement Action or otherwise, shall be held in trust, and remitted in kind, to Senior Creditors until the Senior Debt has been paid and satisfied in full.
(b) Junior Creditor shall not object to or contest, or support any other Person in contesting or objecting to, in any Proceeding, the validity, extent, perfection, priority or enforceability of any Senior Creditors’ interest in the Collateral. Notwithstanding any failure by any Senior Creditor to perfect its security interest in the Collateral or any avoidance, invalidation or subordination by any third party or court of competent jurisdiction of the security interest in the Collateral granted to any Senior Creditor, the priority and rights as between any Senior Creditor and Junior Creditor with respect to the Collateral shall be as set forth herein.
Collateral Priority. The Lenders hereby agree that the Liens created under the Collateral Documents constitute first priority, perfected Liens in favor of the Agent, for the ratable benefit of the Agent and the Revolving Credit Lenders, except for Permitted Liens.
Collateral Priority. The Lenders hereby agree that the Liens created under the Collateral Documents (a) on the Term Loan Collateral constitute (i) first priority, perfected Liens in favor of the Agent, for the ratable benefit of the Agent and the Term Lenders, and (ii) second priority, perfected Liens in favor of the Agent, for the ratable benefit of the Agent and the Revolving Credit Lenders, junior only to the Liens described in the foregoing clause (a)(i), and (b) on the Collateral other than the Term Loan Collateral constitute (i) first priority perfected Liens in favor of the Agent, for the ratable benefit of the Agent and the Revolving Credit Lenders, and (ii) second priority perfected Liens in favor of the Agent, for the ratable benefit of the Agent and the Term Lenders, junior only to the Liens described in the foregoing clause (b)(i), except in each case for Permitted Liens.
Collateral Priority. 129 Section 8.8 Allocation of Proceeds of Collateral.................... 130 Section 8.9 Commingling of Inventory................................ 130 Section 8.10 Export-Related Loan Agreement........................... 131 Section 8.11 Syndication Agent and Co-Documentation Agent Titles..... 131
Collateral Priority. Notwithstanding anything to the contrary contained in any other instrument or document delivered in connection with the Subordinated Debt or otherwise (including, but not limited to, any prior perfection of a security interest or Lien), any Liens or security interests now or hereafter held by the Junior Creditor in any Collateral for any portion of the Subordinated Debt shall be junior and subordinate to any Liens and security interests now or hereafter held by the Senior Creditor in the same Collateral, and the Junior Creditor hereby expressly subordinates all of such Junior Creditor's Liens, mortgages, and security interests in and to the Collateral to the Liens, mortgages, and security interests of the Senior Creditor in the same Collateral. So long as the Senior Debt remains unpaid, the Senior Creditor may, at all times, in its sole discretion, exercise any and all rights, remedies and powers which it now has or may hereafter acquire with respect to any of the Collateral securing the Senior Debt, all without the necessity of obtaining any consent or approval of the Junior Creditor. In furtherance of the provisions of this Section 9, the Junior Creditor covenants and agrees to execute, acknowledge and deliver to the Senior Creditor such additional instruments or documents as may be reasonably necessary to confirm the foregoing.
Collateral Priority. The Creditors agree that no Creditor's lien and security interest in the Collateral shall be prior to or subordinate to any other Creditor's lien and security interest in the Collateral, and that the lien and security interest of each Creditor in the Collateral shall be treated for all purposes as equal in priority to the lien and security interest of each other Creditor. In the event of default by the Borrower in its obligations to any party to this Agreement which are secured by the Collateral, all proceeds of sale of the Collateral, after the payment of the cost of sale and reasonable attorneys' fees, shall be shared by the Creditors in proportion to the outstanding balance of the principal and interest on their respective obligations secured by the Collateral as of the date of sale.
Collateral Priority. The Obligors shall at all times maintain in favor of the Secured Creditors a first priority perfected security interest in the Collateral, subject only to Permitted Liens, the Agreed Security Principles and the provisions of this Agreement regarding Permitted Disposals and Collateral Exchange.