Collateral Security Guaranty Sample Clauses
The 'Collateral Security; Guaranty' clause establishes that the obligations under an agreement are supported by additional security or a third-party guarantee. In practice, this means the borrower may pledge assets such as property, equipment, or accounts receivable as collateral, or a guarantor may promise to fulfill the borrower's obligations if they default. This clause provides the lender with extra assurance of repayment, reducing their risk by offering alternative means of recovery if the primary obligor fails to meet their commitments.
Collateral Security Guaranty. The obligations of the Borrowers under this Agreement shall be secured by a perfected first priority security interest (subject only to Liens permitted hereunder and entitled to priority under applicable law (including Liens in favor of the "Agent" (as defined in the Funding Agreement) under the Funding Agreement to secure the obligations thereunder) and to the Collateral Agency Agreement) in substantially all of the assets of each Borrower, whether now owned or hereafter acquired and wherever located, pursuant to the terms of the Security Agreement, including a pledge by each of the Borrowers of one hundred percent (100%) of the capital stock owned by such Borrower of each of its Subsidiaries, subject to limitations imposed by applicable law with respect to any particular Subsidiary, and to the receipt of consents (including lender consents) as may be required under other loan documents for any particular Subsidiary, provided that the -------- Borrowers shall have used their best efforts to obtain such consents, with the Borrowers acknowledging that the stock of the Guarantor requires no such consent. Following the Borrowers' compliance with the requirements of Section 15 of Amendment No. 1, the obligations of the Borrowers under this Agreement and the other Loan Documents shall also be guaranteed by the Guarantor pursuant to the terms of the Guaranty (subject to the terms of the Collateral Agency Agreement); provided, however, that the Guaranty shall provide that, with the -------- ------- prior written consent of the Agent and the Required Banks, which consent shall not be conditioned on any requirement to repay Indebtedness, such Guaranty shall be released upon any sale, transfer, public offering, merger, consolidation or other similar event involving the change of at least 33% of the legal and beneficial ownership of the Guarantor.
3. Amendment of Section 4.22
Collateral Security Guaranty. The Borrower Obligations under this Agreement shall be secured by a perfected first priority security interest (subject only to Liens permitted hereunder and entitled to priority under applicable law (including Liens in favor of the "Agent" (as defined in the Funding Agreement) under the Funding Agreement to secure the obligations thereunder) and to the Collateral Agency Agreement) in substantially all of the assets of each Borrower, whether now owned or hereafter acquired and wherever located, pursuant to the terms of (1) the Security Agreement, including a pledge by each of the Borrowers of one hundred percent (100%) of the capital stock owned by such Borrower of each of its Subsidiaries (but excluding the capital stock of Medallion Funding Chicago Corp.), subject to limitations imposed by applicable law with respect to any particular Subsidiary, and to the receipt of consents (including lender consents) as may be required under other loan documents for any particular Subsidiary, provided that the -------- Borrowers shall have used their best efforts to obtain such consents, with the Borrowers acknowledging that the pledge of (and subsequent enforcement of the security interest in) the stock of the Guarantor requires no such consent, and (2) the Lockbox Agreements upon the Borrowers' compliance with Section 6.23.1
Collateral Security Guaranty