Asset Based Lending Clause Samples
The Asset Based Lending clause defines the terms under which a loan is secured by specific assets of the borrower, such as inventory, accounts receivable, or equipment. In practice, the lender evaluates the value of these assets and advances funds based on a percentage of their appraised worth, often requiring regular reporting and monitoring of the collateral. This clause ensures that the lender has a secured interest in the borrower's assets, reducing credit risk and providing a mechanism for recovery if the borrower defaults.
Asset Based Lending. Lessee shall have the right at any time to encumber all or any part of its interest in its inventory or trade fixtures in any Improvement placed on the Land with a lien to secure financing, and Lessor agrees to execute a waiver and such other agreements as such asset-based lender may reasonably request in connection with such financing. Lessee agrees that any such waiver by Lessor shall include a provision reasonably acceptable to Lessor to the effect that: (a) such lender shall have the right to remove such financed items only during the Term of the Lease and for a period of sixty (60) days after Lessor has given written notice to such lender that the Lease has terminated, for any reason; (b) if such lender undertakes such removal, such lender shall be obligated to repair, at such lender’s expense, any damage to the Improvements caused by the removal of any of such financed items; and (c) if such lender fails to remove such financed items during the Term of this Lease or within sixty (60) days after receiving written notice from Lessor of the termination of this Lease, such financed items shall be deemed to have been abandoned by such lender to Lessor.
Asset Based Lending. Concessionaire shall have the right, at any time, to encumber all or any part of its interest in the inventory or trade fixtures on the Designated Premises with a lien to secure financing, and the City agrees to execute, subject to other provisions of this Agreement, such waiver, subordination, or other agreements as any such asset-based lender may reasonably request in connection with such financing. Concessionaire agrees that any such City waiver shall include a provision reasonably acceptable to the City to the effect that (i) such asset based lender shall have the right to remove such financed items from the Designated Premises only during the Agreement Term and for a period of sixty (60) days after the City has given written notice to such lender that the Agreement has been terminated, for any reason; (ii) if such lender undertakes such removal, such lender shall be obligated to repair, at such lender's expense, any damage to the Designated Premises or the improvements thereon caused by the removal of any such financed items; and (iii) if such lender fails to remove such financed items during the Agreement Term, or within sixty (60) days after receiving written notice from the City of the termination of this Agreement, such financed items shall be deemed to have been abandoned by such lender to the City. Nothing herein shall be construed as authorizing any such lender to operate the Facilities without the City’s advance written consent, which may be withheld for any reason at the City’s sole discretion.