LexInter | May 13, 2009 | 0 Comments

PARI PASSU CLAUSE

The pari passu clause

The pari passu clause is a clause which provides for the equal treatment of the obligations arising from the credit agreement with its other obligations, existing or possible, with the exception of those which benefit from a security.

The unsubstantiated clause is an anti-subordination clause, which imposes the equal treatment of unsecured debts of the borrower.

The sanction for the violation of this clause is based on the termination clauses for non-performance and on the cross-default clauses.

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