Common use of Defeasance Collateral Clause in Contracts

Defeasance Collateral. The Defeasance Collateral shall be duly endorsed by the holder thereof as directed by Lender or accompanied by a written instrument of transfer in form and substance that would be reasonably satisfactory to a prudent lender and that does not require Borrower or Maryland Loan Guarantor, as applicable, to incur any additional obligations or liabilities, (including, without limitation, such instruments as may be reasonably required by the depository institution holding such securities or by the issuer thereof, as the case may be, to effectuate book-entry transfers and pledges through the book-entry facilities of such institution) in order to perfect, upon the delivery of the Defeasance Collateral, a first priority security interest therein in favor of the Lender in conformity with all applicable state and federal laws governing the granting of such security interests.