Common use of Guaranties and Security of Subsidiaries Clause in Contracts

Guaranties and Security of Subsidiaries. The Obligations shall also be guaranteed pursuant to the terms of the Guaranty. The obligations of the Borrower's Subsidiaries (other than the Mexican Subsidiary) under the Guaranty shall be in turn secured by a perfected first priority security interest (subject only to Permitted Liens entitled to priority under applicable law) in all of the assets of each such Subsidiary (including, without limitation, all shares of capital stock of each such Subsidiary's Subsidiaries, if any, owned by such Subsidiary), whether now owned or hereafter acquired, pursuant to the terms of the Security Documents to which such Subsidiary is a party.