Moneys Subordinated Sample Clauses

The 'Moneys Subordinated' clause establishes that certain payments or debts owed are ranked lower in priority compared to other specified obligations. In practice, this means that if the debtor is unable to meet all its financial commitments, the subordinated amounts will only be paid after higher-priority debts have been satisfied, such as senior loans or secured creditors. This clause is commonly used in financing arrangements to protect the interests of primary lenders by ensuring they are repaid first, thereby allocating risk among creditors and clarifying the order of payment in the event of insolvency or liquidation.
Moneys Subordinated. Upon the occurrence of a Subordination Event, payments from money held under Section 5.05 by the Trustee or any Paying Agent for the payment (subject to the claims of, or payments to, the Trustee or any Agent under or pursuant to this Subordinated Indenture) of principal of and interest on the Securities (and Additional Amounts, if any) shall be subordinated to the prior payment of any Senior Indebtedness or subject to the restrictions set forth in this Article and the Holders shall be obligated to pay over any such amount to the Company or any holder of Senior Indebtedness or any other creditor of the Company, as applicable.
View SourceView Similar (8)

Related to Moneys Subordinated

  • Securities Subordinate to Senior Debt The Company covenants and agrees, and each Holder of a Security, by its acceptance thereof, likewise covenants and agrees, that, to the extent and in the manner hereinafter set forth in this Article XII, the payment of the principal of and any premium and interest (including any Additional Interest) on each and all of the Securities are hereby expressly made subordinate and subject in right of payment to the prior payment in full of all Senior Debt.