Covenants: General Clause Samples
The "Covenants: General" clause sets out the ongoing promises and obligations that parties agree to uphold throughout the duration of a contract. These covenants typically require each party to perform certain actions or refrain from specific behaviors, such as maintaining insurance, complying with laws, or providing regular reports. By clearly outlining these continuing duties, the clause helps ensure that both parties understand their responsibilities, thereby reducing the risk of disputes and promoting smooth contract performance.
Covenants: General. Without limiting the agreements and covenants contained in the Service Agreement or in any related document to which the Grantor is a party, the Grantor hereby covenants and agrees with the Secured Party that: (i) the Grantor shall preserve and maintain the lien created by this Agreement and will protect and defend its title to the Collateral so that the lien so granted shall be and remain a continuing first priority perfected security interest in the Collateral; and (ii) the Grantor will not create, assume or suffer to exist any other lien or other encumbrance in the Collateral except for liens in favor of the Secured Party created by this Agreement. If, in violation of this Agreement, in the Secured Party’s sole opinion exercised in a commercially reasonable manner, any lien or other encumbrance (other than liens in favor of the Secured Party created by this Agreement) may create an obligation having priority over the lien granted hereby, the Secured Party may make written demand to the Grantor to pay such lien or other encumbrance and if such lien or other encumbrance shall remain unpaid five days after any such demand by the Secured Party, the Secured Party may pay such lien or other encumbrance and the amount of such payment shall be charged to the Grantor, be repaid within five business days of notice given by the Secured Party, and be secured by the lien granted hereby.
Covenants: General. Without limiting the agreements and covenants contained in the Credit Agreement or in any other Credit Document to which such Grantor is a party, each Grantor hereby covenants and agrees with the Collateral Agent that:
(a) Unless all steps have been taken which will at all times (after the change in question) preserve the Collateral Agent's first priority projected security interest in all Collateral being provided by such Grantor, it shall not (i) change the state in which such Grantor is incorporated or organized, or (ii) change such Grantor's name (Schedule A hereto shall be deemed to have been amended automatically upon a change effected in compliance with the foregoing sentence.)
(b) It shall preserve and maintain the security interest created by this Agreement and will protect and defend its title to the Collateral so that the security interest so granted shall be and remain a continuing first and prior perfected security interest in the Collateral. Such Grantor will not create, assume or suffer to exist any security interest or other lien or encumbrance in the Collateral, except for the security interest created by this Agreement or as otherwise permitted under the Credit Agreement.
(c) Such Grantor shall maintain books and records pertaining to the Collateral in accordance with GAAP and in such detail, form and scope as the Collateral Agent may reasonably require.
(d) Such Grantor shall execute such other documents as may be reasonably requested by the Collateral Agent in order to effectuate the security interests granted herein.