Common use of The Subordination Clause in Contracts

The Subordination. Each Guarantor hereby absolutely subordinates, both in right of payment and in time of payment, any present or future indebtedness of the Borrower to such Guarantor to the Indebtedness of the Borrower to Lender. If, whether or not at Lender’s request, any Guarantor shall collect, enforce or receive payment from the Borrower upon any indebtedness of the Borrower to such Guarantor, any such sums shall be received by such Guarantor as trustee for Lender and shall be paid over to Lender on account of the Indebtedness of the Borrower to Lender, but without reducing or affecting in any manner the liability of such Guarantor under the other provisions of this Guaranty. Each Guarantor shall file in any bankruptcy or other proceeding in which the filing of claims is required by law, all claims which such Guarantor may have against the Borrower relating to any indebtedness of the Borrower to such Guarantor and does hereby assign to Lender all rights of such Guarantor thereunder. If such Guarantor does not file any such claim, the Lender as limited attorney-in-fact for such Guarantor is hereby authorized to do so in the name of such Guarantor or, in Lender’s discretion, to assign the claim to a nominee and to cause proof of claim to be filed in the name of Lender’s nominee. The foregoing power of attorney is coupled with an interest and cannot be revoked. Lender or its nominee shall have the sole right to accept or reject any plan proposed in any such proceeding and to take any other action which a party filing a claim is entitled to do. In all such cases, whether in administration, bankruptcy or otherwise, the person or persons authorized to pay such claim shall pay, and each Guarantor does hereby authorize such person or persons to pay to Lender the amount payable on such claim and, to the full extent necessary for that purpose, such Guarantor hereby assigns to Lender all of such Guarantor’s rights to any such payments or distributions to which such Guarantor would otherwise be entitled. Any instruments now or hereafter evidencing any indebtedness of the Borrower to such Guarantor shall be marked with a legend that the same are subject to this Guaranty and, if Lender so requests, shall be delivered to Lender.

The Subordination. Each Guarantor hereby absolutely subordinates, both in right of payment and in time of payment, any present or future indebtedness of the Borrower to such Guarantor to the Indebtedness of the Borrower to Lender. If, whether or not at Lender’s 's request, any Guarantor shall collect, enforce or receive payment from the Borrower upon any indebtedness of the Borrower to such Guarantor, any such sums shall be received by such Guarantor as trustee for Lender and shall be paid over to Lender on account of the Indebtedness of the Borrower to Lender, but without reducing or affecting in any manner the liability of such Guarantor under the other provisions of this Guaranty. Each Guarantor shall file in any bankruptcy or other proceeding in which the filing of claims is required by law, all claims which such Guarantor may have against the Borrower relating to any indebtedness of the Borrower to such Guarantor and does hereby assign to Lender all rights of such Guarantor thereunder. If such Guarantor does not file any such claim, the Lender as limited attorney-in-fact for such Guarantor is hereby authorized to do so in the name of such Guarantor or, in Lender’s 's discretion, to assign the claim to a nominee and to cause proof of claim to be filed in the name of Lender’s 's nominee. The foregoing power of attorney is coupled with an interest and cannot be revoked. Lender or its nominee shall have the sole right to accept or reject any plan proposed in any such proceeding and to take any other action which a party filing a claim is entitled to do. In all such cases, whether in administration, bankruptcy or otherwise, the person or persons authorized to pay such claim shall pay, and each Guarantor does hereby authorize such person or persons to pay to Lender the amount payable on such claim and, to the full extent necessary for that purpose, such Guarantor hereby assigns to Lender all of such Guarantor’s 's rights to any such payments or distributions to which such Guarantor would otherwise be entitled. Any instruments now or hereafter evidencing any indebtedness of the Borrower to such Guarantor shall be marked with a legend that the same are subject to this Guaranty and, if Lender so requests, shall be delivered to Lender.