Common use of SUBORDINATION AND SECURITY Clause in Contracts

SUBORDINATION AND SECURITY. You hereby acknowledge that the payment of principal and interest on the Bond will be subordinated in right of payment to the extent of the principal amount of (and premium, if any), and interest on, all senior indebtedness (however defined in any debt instrument) of the Company outstanding at any time during the term of the Bond, and you hereby acknowledge that the indebtedness hereunder is unsecured. You further acknowledge that the Bond is unsecured and that no sinking fund is being established by the Company for the retirement of the indebtedness.