Collateral and Collateral Call Sample Clauses

The 'Collateral and Collateral Call' clause defines the requirements and procedures for providing and maintaining collateral in a contractual relationship, typically to secure obligations or mitigate credit risk. It outlines what types of assets can be used as collateral, how their value is determined, and the process by which one party can demand additional collateral if the value falls below a specified threshold. This clause ensures that parties have adequate financial protection against default or non-performance, thereby reducing risk and promoting trust between the parties.