Common use of Charging Clause Clause in Contracts

Charging Clause. 3.1 As security for the Outstanding Amounts and also as security for payment of any other charges, costs (between attorney and client) and expenses payable to or incurred by the Lender in relation thereto, the Borrower hereby charges and hypothecates in favour of the Lender all the present and future Assets now or at any time during the continuance of the Loan Agreement/this Deed. The Assets shall remain hypothecated and remain under charge to the Lender as security for the payment by the Borrower to the Lender of the said Outstanding Amounts. The charge-cum-hypothecation created on the Assets shall rank as first and exclusive/pari passu/second charge as per sanction letter. 3.2 In case the charge is created on pari passu basis, the Borrower shalle be free to borrow addition funds for its normal needs from other lenders. The Borrower will obtain NOC from the bank for ceading pari passu charge on the security within the time frame as per sanction letter. The security cover for the facility to be kept at minimum agreed ratio as per terms of sanction letter. 3.3 The Borrower shall not, without the prior written consent of the Lender during the continuance of the Loan/Credit Facility Agreement /this Deed, create or attempt to create any charge or any further security interest or encumbrance of any kind over the Assets or any part thereof and the Borrower shall do all such acts and things required to preserve the Assets. 3.4 The charge/hypothecation shall be deemed to be created on the Assets immediately on the execution of this Deed. 3.5 The Borrower specifically agrees that any addition, escalation or accretion to the Assets /security, accruing in respect of the Assets or by way of production and profits thereto or any part thereof shall also be deemed to be hypothecated with the Lender. The Parties agree that there is