Assignment as Collateral Sample Clauses
The "Assignment as Collateral" clause allows a party to transfer its rights or interests under a contract to a third party as security for a loan or other obligation. In practice, this means that if the assigning party defaults on its obligation, the lender or secured party can claim the assigned rights to recover their losses. For example, a company might assign its rights to receive payments under a contract to a bank as collateral for a loan. This clause is essential for facilitating secured financing arrangements, as it provides lenders with a means to mitigate risk by having a claim on valuable contractual rights if the borrower fails to meet their obligations.
Assignment as Collateral. Each party hereto consents to the assignment and pledge by the Lessor to the Indenture Trustee, as security for the Certificates to be issued under the Indenture and the other obligations secured thereby as specified in the Indenture, of all of the Lessor's right, title and interest in and to the Purchase Agreement and the Consent and Guaranty under this Assignment.