Common use of Default; Collateral Clause in Contracts

Default; Collateral. While a Default exists, the Holders agree to promptly confer in order that Majority Holders may agree upon a course of action for the enforcement of the right of Holders and the Collateral Agent is entitled to refrain from taking any action(without incurring any liability to any Person for so refraining) unless and until it has received instructions from Majority Holders. In actions with respect to any property of the Company, the Collateral Agent is acting for the ratable benefit of each Holder. The Collateral Agent shall hold, for the ratable benefit of all Holders, any security it receives for the Secured Obligation or any guaranty of the Secured Obligation it receives upon or in lieu of foreclosure.