Joint and several obligations refer to a legal arrangement where multiple parties are collectively and individually responsible for fulfilling a contractual obligation. This means that a creditor can demand the full performance or payment from any of the involved parties, rather than just their proportional share.
Payee will make a notation hereon of all principal payments previously made hereunder and of the date to which interest hereon has been paid to the extent consistent with customary procedures of such Payee; provided, the failure to make a notation of any payment made on this Note shall not limit or otherwise affect the joint and several obligations of the Borrowers hereunder with respect to payments of principal of or interest on this Note.
No reference herein to the Credit Agreement and no provision of this Note or the Credit Agreement shall alter or impair the joint and several obligations of the Borrowers, which are absolute and unconditional, to pay the principal of and interest on this Note at the place, at the respective times, and in the currency herein prescribed.
Recovery under the Financing Documents. If Investor Parent agrees to the proposed Financing Documents and such Financing Documents include any obligations of Investor Parent and ioneer Parent on a joint and several basis, including the obligation to provide certain guarantees and/or debt service undertakings (“Joint and Several Obligations”), Investor Parent and ioneer Parent shall have entered into the Indemnification Agreement, mutually agreeable to the Parties, providing, inter alia, that (i) each of Investor Parent and ioneer Parent shall, from and after the Closing, indemnify, defend and hold harmless the other Party and such other Party’s equity holders and Affiliates, and their respective managers, directors, officers, employees and agents, for any amounts paid by such other Party under the Financing Documents in excess of the amount resulting from multiplying (x) such other Party’s pro rata Membership Interest in the Company by (y) the aggregate amounts paid by Investor Parent and ioneer Parent and their respective managers, directors, officers, employees and agents under the Financing Documents, and (ii) ioneer Parent shall pay to Investor Parent at the time of signing of the relevant Financing Documents containing such Joint and Several Obligations, and each anniversary thereof, a ticking fee amounting to ***% per annum on an amount representing ***% of the amount guaranteed or committed by Investor Parent under any Joint and Several Obligation required under the Financing Documents.”
Confirmation of Status of JanOne as a Joint Obligor to Lender. The Joint Obligors confirm that, based on JanOne’s tendering of payments to the Lender in connection with its joint and several obligations under the Third Amendment, JanOne’s status as a guarantor thereunder has been modified in this Fourth Amendment to that of an obligor of equal dignity with ARCA in respect of the obligations to the Lender under the Original Revolving Line, as previously and currently amended.
Should the Borrower default in the payment or performance of any of the Obligations, the joint and several obligations of the Guarantor hereunder with respect to such Obligations in default shall, upon demand by the Lender, become immediately due and payable to the Lender, without demand or notice of any nature, all of which are expressly waived by the Guarantor.
The Federal Home Loan Bank of New York (the “Bank”) obtains most of its funds from the sale of debt securities, known as consolidated obligations, in the capital markets. Consolidated obligations, which consist of bonds and discount notes, are by regulation the joint and several obligations of the eleven Federal Home Loan Banks.
The guarantees of the Guarantors will be joint and several obligations of the Guarantors. Each guarantee is a full and unconditional guarantee under the Facility. The guarantee of the Guarantors will rank pari passu with other Senior Indebtedness.
Each Loan Party hereby confirms that the security interests granted by such Loan Party under the terms and conditions of the Security Agreement secures the New Term Loans as part of the Obligations. Each Loan Party hereby (i) confirms that each Loan Document to which it is a party or is otherwise bound and all Collateral (as defined in the Security Agreement) encumbered thereby will continue to guarantee or secure, as the case may be, to the fullest extent possible in accordance with the Loan Documents, the payment and performance of the Obligations, as the case may be, including without limitation the payment and performance of all such applicable Obligations that are joint and several obligations of each Loan Party now or hereafter existing, (ii) confirms its respective grant to the Collateral Agent for the benefit of the Secured Parties of the security interest in and continuing Lien on all of such Loan Party’s right, title and interest in, to and under all Collateral (as defined in the Security Agreement), whether now owned or existing or hereafter acquired or arising and wherever located, as collateral security for the prompt and complete payment and performance in full when due, whether at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise, of all applicable Obligations (including all such Obligations as amended, reaffirmed and/or increased pursuant to this Third Amendment), subject to the terms contained in the applicable Loan Documents, and (iii) confirms its respective guarantees, pledges, grants of security interests and other obligations, as applicable, under and subject to the terms of each of the Loan Documents to which it is a party.
Joint and several obligations refer to a legal concept in which two or more parties are collectively (jointly) and individually (severally) responsible for fulfilling a contractual duty or liability. This means that each party is responsible for the entire obligation, as well as their share. If one party fails to fulfill their part of the obligation, the others can be held accountable for covering the full extent of the liability.
You should use joint and several obligations when you want to ensure that multiple parties are accountable for a single obligation, offering greater security that the obligation will be fulfilled. It’s particularly useful in scenarios where:
To write a joint and several obligations clause, you should clearly specify the obligations of the parties involved and their potential liabilities. Here’s a basic template:
“The parties [Party A, Party B, and Party C] agree to be jointly and severally bound to perform the obligations and liabilities as set forth in this agreement. Each party is individually responsible for the full performance of these obligations, and the non-performance by one party does not absolve the remaining parties of their responsibilities.”
Contracts that often contain joint and several obligations include:
Using joint and several obligations is common in these contracts to protect against default risk and to streamline legal processes in the event of a dispute.
Dive deeper into the world of clauses and learn more about these other clauses that are used in real contracts.
A "Jurisdiction and Venue" clause specifies the particular court and location where any disputes related to the contract will be resolved. This clause helps provide clarity and predictability for the parties involved, ensuring that legal proceedings occur in a mutually agreed-upon and convenient forum.
The "Key Personnel" clause outlines the specific individuals deemed essential to fulfilling a contract, specifying their roles and responsibilities within the project. It often includes provisions requiring the approval of any changes to these personnel, ensuring continuity and the maintenance of necessary expertise throughout the contract's duration.
Landlord indemnification is a contractual provision where the tenant agrees to hold the landlord harmless from any liabilities, losses, or damages arising from the tenant's actions or negligence on the property. This clause is designed to protect the landlord from legal and financial repercussions, shifting the responsibility to the tenant for any claims related to their occupancy.
Try our AI contract analysis and extract important clauses and information from existing contracts.
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