Extracted Collateral Clause Samples

The Extracted Collateral clause defines the treatment and handling of collateral that has been separated or removed from a larger pool of assets, typically in the context of secured transactions or lending agreements. This clause specifies the rights and obligations of the parties regarding such collateral, including how it is identified, managed, and potentially substituted or replaced. By clearly outlining these procedures, the clause ensures that both parties understand how extracted collateral is to be dealt with, thereby reducing disputes and providing certainty in the event of asset segregation or enforcement actions.