After Enforcement Clause Samples
The "After Enforcement" clause outlines the rights and obligations of parties following the enforcement of a security interest or similar legal remedy. Typically, this clause details what happens to the proceeds from the sale of secured assets, how any remaining obligations are handled, and the process for distributing funds or property after enforcement actions have been taken. Its core practical function is to provide a clear framework for resolving outstanding issues and distributing assets once enforcement has occurred, thereby reducing disputes and ensuring an orderly conclusion to enforcement proceedings.
After Enforcement. Upon enforcement of the Security, the Trustee will hold on trust all amounts it receives upon realisation of the Security or which are payable in respect of the Notes or to the Secured Parties to apply them:
(i) Trustee: first, to the Trustee in respect of the Trustee’s Expenses;
After Enforcement. At any time after the occurrence of a Declared Default:
(a) the Security Agent may, for the purposes of protecting its interests in relation to the Secured Sums and preserving the value of the security created by this Debenture (in each case, in its absolute discretion) and/or realising the security created by this Debenture, exercise (but is not obliged to exercise) in the name of a Chargor or otherwise and without any further consent or authority on the part of any Chargor, all voting powers and rights attaching to the Specified Investments (including Derivative Rights) as it sees fit, including any rights to nominate or remove a director, as if the Security Agent were the sole beneficial owner of the Specified Investments;
(b) all Derivative Rights shall, if received by a Chargor or the Security Agent's nominee, be held on trust for and forthwith paid or transferred to the Security Agent; and
(c) each Chargor shall (and shall procure that the Security Agent's nominees shall) accept short notice for and attend any shareholders meetings relating to the Specified Investments, appoint proxies and exercise voting and other rights and powers exercisable by the holders of the Specified Investments as the Security Agent may direct from time to time as it sees fit for the purpose of protecting its interests in relation to the Secured Sums. For the avoidance of doubt, unless and until the Security Agent takes any steps to exercise any voting powers or rights attaching to the Specified Investments after becoming entitled (but not obliged) to do so under this Clause, all such powers and rights remain with the relevant Chargor.
After Enforcement. At any time after the occurrence of a Declared Default, all Derivative Rights shall, if received by a Member be held on trust for and forthwith paid or transferred to the Security Agent. For the avoidance of doubt, unless and until the Security Agent takes any steps to exercise any voting powers or rights attaching to the LLP Interests after becoming entitled (but not obliged) to do so under this Clause, all such powers and rights remain with the relevant Member.
After Enforcement. Upon enforcement of the Security, the Trustee will hold on trust all amounts it receives upon realisation of the Security or which are payable in respect of the Notes or to the Secured Parties to apply them:
(i) Trustee: first, to the Trustee in respect of the Trustee Expenses;
(ii) Secured Agents: secondly, to each Secured Agent pari passu and rateably in respect of the Secured Agents’ Expenses;
(iii) Issuer: thirdly, if an Arranger Insolvency Event has occurred, to the Issuer in respect of the fees payable by the Issuer in connection with the maintenance of its corporate existence, including audit fees, taxes, legal fees, governmental and other regulatory fees and fees and expenses payable to the administrator of the Issuer under the agreement appointing such administrator (such amounts to be apportioned pro rata amongst all outstanding Series of the Issuer);
After Enforcement. During any Enforcement Time:
(a) the Security Trustee or the Receiver shall be entitled to exercise or direct the exercise of the voting and other rights attached to any Investment in such manner as it or he sees fit; and
(b) each Chargor shall comply or procure the compliance with any directions of the Security Trustee or the Receiver in respect of the exercise of those rights and shall promptly execute and/or deliver to the Security Trustee or the Receiver such forms of proxy as it or he requires with a view to enabling such person as it or he selects to exercise those rights.