Additional Collateral Bonds Sample Clauses
The "Additional Collateral Bonds" clause requires a party, typically a borrower or obligor, to provide extra bonds as collateral to secure an obligation if certain conditions are met. In practice, this means that if the value of existing collateral falls below a specified threshold or if the risk profile changes, the party must furnish additional bonds to maintain adequate security for the other party. This clause ensures that the secured party remains protected against potential losses by maintaining sufficient collateral coverage throughout the term of the agreement.
Additional Collateral Bonds. The principal amount of the Collateral Bonds which may be authenticated and delivered hereunder is not limited, except as otherwise provided in Article IV of the Indenture.