SUBORDINATION OF NOTES Clause Samples
The Subordination of Notes clause establishes that the notes in question are ranked below certain other debts or obligations in terms of repayment priority. In practice, this means that if the issuer becomes insolvent or is liquidated, holders of the subordinated notes will only be repaid after all senior creditors have been satisfied. This clause is essential for clarifying the order of payment in the event of financial distress, thereby allocating risk among different classes of creditors and making the terms of repayment transparent to all parties involved.
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SUBORDINATION OF NOTES. Section 4.01.
SUBORDINATION OF NOTES. SECTION 11.01. Notes Subordinate to Senior Indebtedness...........................................113 SECTION 11.02. Payment Over of Proceeds upon Dissolution, etc.....................................113 SECTION 11.03. Suspension of Payment When Senior Indebtedness in Default..........................114 SECTION 11.04. Trustee's Relation to Senior Indebtedness..........................................116 SECTION 11.05. Subrogation to Rights of Holders of Senior Indebtedness............................
SUBORDINATION OF NOTES. Section 14.01. Notes Subordinate to Senior Debt..............................175 Section 14.02. Payment Over of Proceeds upon Dissolution, etc................175 Section 14.03. Suspension of Payment When Senior Debt in Default.............177 Section 14.04. Trustee's Relation to Senior Debt.............................180 Section 14.05. Subrogation to Rights of Holders of Senior Debt...............180 Section 14.06. Provisions Solely to Define Relative Rights...................181 Section 14.07.
SUBORDINATION OF NOTES. Section 11.01.
SUBORDINATION OF NOTES. Section 11.01. Notes Subordinate to Senior Indebtedness............. 145 -v-
SUBORDINATION OF NOTES. SECTION
14.01. Notes Subordinate to Senior --------------------------- Indebtedness............................... 120 ------------ SECTION
14.02. Payment Over of Proceeds Upon ----------------------------- Dissolution, Etc........................... 120 ---------------- SECTION
14.03. No Payment When Senior Indebtedness in -------------------------------------- Default.................................... 121 ------- SECTION 14.04. Certain Payments Permitted.................
SUBORDINATION OF NOTES. Section 4.1
SUBORDINATION OF NOTES. 84 14.1 Notes Subordinate to Senior Indebtedness..........................................................84
SUBORDINATION OF NOTES. This Note is subordinated in right of payment to all Senior Debt to the extent and in the manner provided in this Article XI.
SUBORDINATION OF NOTES. 4.1 The Company, for itself, its successors and assigns, covenants and agrees, and each holder of Notes by its acceptance thereof likewise covenants and agrees, that the payment of the principal of and interest on each and all of the Notes shall be subordinate and subject, to the extent and in the manner hereinafter set forth, in right of payment to the prior payment in full of all Senior Indebtedness.
4.2 Upon any distribution of assets of the Company upon any dissolution, winding up, liquidation or reorganization of the Company, whether in bankruptcy, insolvency or receivership proceedings or upon an assignment for the benefit of creditors or any other dissolution, winding up, liquidation or reorganization of the Company:
(1) Any Senior Indebtedness shall first be paid in full, or provision made for such payment in full of the principal thereof, and premium, if any, and interest thereon, before any payment is made on account of the principal of, or interest on, the Notes;
(2) Any payment or distribution of assets of the company of any kind or character, whether in cash, property or securities (other than stock of the Company as reorganized or readjusted or securities of the Company or any other corporation provided for by a plan of reorganization or readjustment the payment of which is subordinate, at least to the extent provided in this Section 4 with respect to the Notes, to the payment of all Senior Indebtedness at the time outstanding and to any securities issued in respect thereof under any such plan or reorganization or readjustment), to which the holders of the Notes would be entitled except for the provisions of this Section 4 shall be paid by the liquidating trustee or agent or other person making such payment or distribution, whether a trustee in bankruptcy, a receiver or liquidating trustee or other trustee or agent, directly to the holders of senior Indebtedness or their representative or representatives or to the trustee or trustees under any indenture under which any instruments evidencing any of such Senior Indebtedness may have been issued, ratably according to the aggregate amounts remaining unpaid on account of the principal of, and premium, if any, and interest on, the Senior Indebtedness held or represented by each, to the extent necessary to make payment in full of all Senior Indebtedness remaining unpaid, after giving effect to any concurrent payment or distribution, or provision therefor, to the holders of such Senior Indebtedness;...