FINANCE SECURITY INTEREST Clause Samples
A Finance Security Interest clause establishes a lender's legal right to take possession of specified assets if the borrower defaults on their financial obligations. Typically, this clause identifies the collateral—such as equipment, inventory, or receivables—that secures the loan and outlines the conditions under which the lender may enforce its rights. By clearly defining the security interest, the clause protects the lender's investment and ensures a mechanism for recovering funds in the event of non-payment.
FINANCE SECURITY INTEREST. 24.1 During the Term and the Extended Term, as the case may be, Entrée shall not amend, supplement, waive, restate, supersede, terminate, cancel or release or otherwise consent to a breach of the provisions of the Finance Security Interest without the prior written consent of Sandstorm, such consent not to be unreasonably withheld.
24.2 If, after the Finance Security Interest has been executed and delivered to Sandstorm, the terms of any Permitted Encumbrance charge all or some of the same collateral that is described in subsections (ii) and (iii) of the definition of Finance Security Interest and that is charged by the Finance Security Interest and the counterparty to the Permitted Encumbrance expressly requires that the Permitted Encumbrance be a first ranking priority Encumbrance in respect of such collateral then Sandstorm shall, in good faith, promptly do all acts and things reasonably necessary (including negotiating and executing all documents) to subordinate its security interest in and to such collateral to and in favour of the grantee of the Permitted Encumbrance.