Common use of Covenant Not to Challenge Clause in Contracts

Covenant Not to Challenge. This Agreement has been negotiated by the parties with the expectation and in reliance upon the assumption that the instruments and documents evidencing the Senior Indebtedness and the Subordinated Indebtedness are valid and enforceable. In determining whether to enter into this Agreement, the Subordinated Creditor, on the one hand, and the Lender, on the other hand, have assumed such validity and enforceability, and have agreed to the provisions contained herein, without relying upon any reservation of a right to challenge or call into question such validity or enforceability. As between the Subordinated Creditor, on the one hand, and the Lender, on the other hand, such parties hereby covenant and agree, to the fullest extent permitted by law, that neither the Lender nor the Subordinated Creditor shall initiate in any proceeding a challenge to the validity or enforceability of the documents and instruments evidencing the Senior Indebtedness or the Subordinated Indebtedness, as applicable.

Covenant Not to Challenge. This Agreement has been negotiated agreed to by the parties with the expectation and in reliance upon the assumption that the instruments and documents evidencing the Senior Indebtedness and the Subordinated Indebtedness are valid and enforceable. In determining whether to enter into this Agreement, the Subordinated CreditorLender, on the one hand, and the Senior Lender, on the other hand, have assumed such validity and enforceability, and have agreed to the provisions contained herein, without relying upon any reservation of a right to challenge or call into question such validity or enforceability. As between the Subordinated CreditorLender, on the one hand, and the Senior Lender, on the other hand, such parties hereby covenant and agree, to the fullest extent permitted by law, that neither the Senior Lender nor the Subordinated Creditor Lender shall initiate in any proceeding a challenge to the validity or enforceability of the documents and instruments evidencing or securing the Senior Indebtedness or the Subordinated Indebtedness, as applicable.