Preferential Collection of Claims Against Corporation Clause Samples
The Preferential Collection of Claims Against Corporation clause establishes the order and priority in which creditors' claims are to be satisfied from a corporation's assets, particularly in the event of insolvency or liquidation. This clause typically outlines which types of debts—such as secured debts, employee wages, or tax obligations—are to be paid before others, ensuring that certain creditors receive payment ahead of general unsecured creditors. Its core practical function is to provide a clear hierarchy for debt repayment, thereby reducing disputes among creditors and ensuring a fair and predictable process during the winding up of a corporation.
Preferential Collection of Claims Against Corporation. If and when the Trustee shall be or become a creditor of the Corporation (or any other obligor upon the Securities), the Trustee shall be subject to the provisions of the Trust Indenture Act regarding the collection of claims against the Corporation (or any such other obligor).
Preferential Collection of Claims Against Corporation. The Trustee shall comply with TIA Section 311(a), excluding any creditor relationship listed in TIA Section 311(b). A Trustee who has resigned or been removed shall be subject to TIA Section 311(a) to the extent indicated therein.
Preferential Collection of Claims Against Corporation. The Trustee shall comply with Section 311(a) of the Trust Indenture Act, excluding any creditor relationship listed in Section 311(b) of the Trust Indenture Act. A Trustee who has resigned or been removed shall be subject to Section 311(a) of the Trust Indenture Act to the extent indicated therein, excluding, as applicable, any creditor relationship listed in Section 311(b) of the Trust Indenture Act.
Preferential Collection of Claims Against Corporation. (a) Subject to Subsection (b) of this Section, if the Trustee shall be or shall become a creditor, directly or indirectly, secured or unsecured, of the Corporation within four months prior to a default, as defined in Subsection (c) of this Section, or subsequent to such a default, then, unless and until such default shall be cured, the Trustee shall set apart and hold in a special account for the benefit of the Trustee individually, the Holders of the Debentures, the Holders of Coupons and the holders of other indenture securities (as defined in Subsection (c) of this Section);
(1) an amount equal to any and all reductions in the amount due and owing upon any claim as such creditor in respect of principal or interest, effected after the beginning of such four month period and valid as against the Corporation and its other creditors, except any such reduction resulting from the receipt or disposition of any property described in paragraph (2) of this Subsection, or from the exercise of any right of set-off which the Trustee could have exercised if a petition in bankruptcy had been filed by or against the Corporation upon the date of such default; and
(2) all property received by the Trustee in respect of any claim as such creditor, either as security therefor, or in satisfaction or composition thereof, or otherwise, after the beginning of such four month period, or an amount equal to the proceeds of any such property, if disposed of, subject, however, to the rights, if any, of the Corporation and its other creditors in such property or such proceeds. Nothing herein contained, however, shall affect the right of the Trustee
(A) to retain for its own account (i) payments made on account of any such claim by any person (other than the Corporation) who is liable thereon, and (ii) the proceeds of the bona fide sale of any such claim by the Trustee to a third person, and (iii) distribution made in cash, securities or other property in respect of claims filed against the Corporation in bankruptcy or receivership or in proceedings for reorganization pursuant to Title II of the United States Code, as now constituted or as hereafter amended, or applicable State law;
(B) to realize, for its own account, upon any property held by it as security for any such claim, if such property was so held prior to the beginning of such four month period;
(C) to realize, for its own account, but only to the extent of the claim hereinafter mentioned, upon any property held by it as se...
Preferential Collection of Claims Against Corporation. The Trustee is subject to TIA Sec. 311(a), excluding any creditor relationship listed in TIA Sec. 311(b). A Trustee who has resigned or been removed is subject to TIA Sec. 311(a) to the extent indicated.
Preferential Collection of Claims Against Corporation. ARTICLE 8 - DISCHARGE OF INDENTURE Section 8.01 Termination of Corporation's Obligations. Section 8.02
Preferential Collection of Claims Against Corporation. 7-10 Section 7.15. Statement by Trustee of Funds and Accounts and Other Matters.............................................. 7-10 Section 7.16. Trustee, Authenticating Agent, Note Registrar, Paying Agents, Deposit Agents, Remarketing Agents, Depositaries, Auction Agents and Broker-Dealers May Buy, Hold, Sell or Deal in Notes.................................................. 7-10 Section 7.17. Authenticating Agent and Paying Agents; Paying Agents To Hold Moneys in Trust.......................... 7-11 Section 7.18. Removal of Authenticating Agent and Paying Agents; Successors.................................. 7-12 Section 7.19. Appointment and Qualifications of Deposit Agents............... 7-12 Section 7.20. Appointment and Qualifications of Depositaries................. 7-13 Section 7.21. Remarketing Agents............................................. 7-15 Section 7.22. Qualifications of Remarketing Agents........................... 7-15