Common use of Automatic Release Clause in Contracts

Automatic Release. If any Obligor sells any Collateral which is permitted to be disposed of under Section 8.05, the Liens in the Collateral granted to the Agent under the Basic Document shall automatically terminate and the Collateral will be disposed of free and clear of all Liens of the Agent.

Appears in 3 contracts

Sources: Credit Agreement (Empire Resources Inc /New/), Credit Agreement (Empire Resources Inc /New/), Credit Agreement (Empire Resources Inc /New/)