Collateral Documents Collateral Clause Samples

Collateral Documents Collateral. (a) Each of the representations and warranties contained in the Collateral Documents is true and correct. (b) The provisions of each Collateral Document, subject to performance in accordance therewith, are effective to create in favor of the Collateral Agent party thereto, for the benefit of such Collateral Agent and the Holders, legal, valid and enforceable security interests in all right, title and interest of the Issuer party to such Collateral Document in the Collateral purportedly in pledge thereunder, which security interests constitute and shall continue to constitute fully perfected and continuing first priority Liens on and security interests in all right, title and interest of such Issuer in such Collateral. Except for SCA A Shares, which may only be owned by Mexican investors (unless otherwise approved by the Foreign Investment Commission and the Ministry of Finance), all of the Collateral may be owned by foreign investors (including without limitation the U.S. Collateral Agent and the Holders) pursuant to the estatutos sociales and other constitutional documents of SCA, Seminis, DNAP and Empaques, as applicable, the Mexican Foreign Investment Law, the Mexican Insurance Law and other applicable laws, subject to (i) the approval of the Ministry of Finance, if the SCA Shares to be acquired by a single foreign or Mexican investor upon foreclosure under the Mexican Trust Agreement amount to 10% or more of the capital stock of SCA, (ii) the absence of objection of the Federal Competition Commission, if the amount of the transaction arising from the foreclosure exceeds the threshold amount specified under applicable law or such transaction otherwise raises competition issues, and (iii) the approval of the Ministry of Finance and of the Foreign Investment Commission, if upon foreclosure under the Mexican Trust Agreement non-Mexican investors are to acquire control of SCA.

Collateral Documents Collateral