Example ContractsClausesapplication of payments of and recoveries on pari passu debtVariants
Application of Payments of and Recoveries on Pari Passu Debt
Application of Payments of and Recoveries on Pari Passu Debt contract clause examples

Contesting Liens and Provisions of this Agreement. Each Pari Passu Creditor agrees not to initiate, prosecute or participate in any claim, action or other proceeding # challenging the enforceability, validity, perfection or priority of the Pari Passu Debt and/or the 2024 Debt or any Liens and security interests securing the Pari Passu Debt and/or the 2024 Debt or # challenging the enforceability or validity of any term or provision of this Agreement, including without limitation the provisions of this Agreement relating to the relative rights of Pari Passu Creditors to the allocation of payments and recoveries payable on account of the Pari Passu Debt and/or the 2024 Debt, as applicable (including from the Collateral and the proceeds thereof); provided that Pari Passu Creditors may file any necessary responsive or defensive pleadings in opposition to any such claim, action or proceeding described in the [foregoing clauses (i) and (ii)])] made by any Person; provided further, notwithstanding anything to the contrary set forth in this Agreement, that nothing in this Agreement shall be construed to prevent or impair the rights of any Pari Passu Creditor to enforce this Agreement, including without limitation the provisions of this Agreement relating to the relative rights of the Pari Passu Creditors to the allocation of payments and recoveries payable on account of the Pari Passu Debt and/or the 2024 Debt, as applicable (including from the Collateral and the proceeds thereof).

Each Pari Passu Creditor agrees not to initiate, prosecute or participate in any claim, action or other proceeding # challenging the enforceability, validity, perfection or priority of the Pari Passu Debt and/or the 2024 Debt or any Liens and security interests securing the Pari Passu Debt and/or the 2024 Debt, as applicable, or # challenging the enforceability or validity of any term or provision of this Agreement, including without limitation the provisions of this Agreement relating to the relative rights of the Pari Passu Creditors to the allocation of payments and recoveries payable on account of the Pari Passu Debt and/or the 2024 Debt, as applicable (including from the Collateral and the proceeds thereof); provided that the Pari Passu Creditors may file any necessary responsive or defensive pleadings in opposition to any such claim, action or proceeding described in the [foregoing clauses (i) and (ii)])] made by any Person.

The provisions of this Agreement shall continue to govern the relative rights and priorities of the Pari Passu Creditors even if all or part of the Pari Passu Debt and/or 2024 Debt, or the Liens securing the Pari Passu Debt and/or 2024 Debt, are subordinated, set aside, avoided, invalidated or disallowed in connection with any such Proceeding, and this Agreement shall be reinstated if at any time any payment of any of the Pari Passu Debt and/or 2024 Debt is rescinded or must otherwise be returned by any holder of Pari Passu Debt and/or 2024 Debt, as applicable, or any representative of such holder.

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