This excerpt taken from the MTH 8-K filed Feb 26, 2007.
SECTION 11.08. Relative Rights.
This Article Eleven defines the relative rights of Holders of Notes and holders of Senior Debt. Nothing in this Indenture shall:
(a) impair, as between the Issuer and Holders of Notes, the obligation of the Issuer, which is absolute and unconditional, to pay principal of and interest on the Notes in accordance with their terms;
(b) affect the relative rights of Holders of Notes and creditors of the Issuer other than their rights in relation to holders of Senior Debt;
(c) prevent the Trustee or any Holder of Notes from exercising its available remedies upon a Default or Event of Default, subject to the rights of holders and owners of Senior Debt to receive distributions and payments otherwise payable to Holders of Notes; or
(d) subordinate in favor of holders of Senior Debt or otherwise impair the rights of the Trustee under Section 7.06 hereof.
If the Issuer fails because of this Article Eleven to pay principal of or interest on a Note on the due date, the failure is still a Default or Event of Default.