Holdings Collateral Clause Samples
The Holdings Collateral clause defines the requirements and procedures for assets or property held as security for obligations under an agreement. Typically, this clause outlines what types of assets qualify as collateral, how they must be maintained or controlled, and the rights of the secured party in relation to these holdings. For example, it may specify that certain securities or cash balances are to be held in a designated account as collateral until obligations are fulfilled. The core function of this clause is to protect the interests of the party receiving collateral by ensuring there are clear rules governing the custody and use of the assets, thereby reducing credit risk and providing a mechanism for recourse in case of default.
Holdings Collateral. Notwithstanding anything to the contrary in this Agreement, the parties hereto agree that (a) with respect to Holdings, the Collateral shall be limited to now owned or hereafter acquired (i) Equity Interests of the Borrower (and any successor entity) owned by Holdings, including those that are listed on Schedule II, and any other Equity Interests of Borrower (and any successor entity) obtained in the future by Holdings and, in each case, the certificates representing all such Equity Interests; (ii) payments of principal or interest, dividends, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of, in exchange for or upon the conversion of, and all other Proceeds received in respect of, the Equity Interests and securities referred to in clauses (i) above; (iii) subject to Section 2.06, all rights and privileges of Holdings with respect to the securities and other property referred to in clauses (i) and (ii) above; and (iv) all Proceeds of any of the foregoing (collectively the “Holdings Collateral”) and (b) the representations, warranties and covenants set forth herein shall apply to Holdings only with respect to the Holdings Collateral.
Holdings Collateral. Notwithstanding anything to the contrary in any Loan Document or in this Article VII in no event shall any property of Holdings other than the Equity Interests of Borrower required to be pledged as collateral in accordance with the Security Documents.
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Holdings Collateral. All representations, warranties and covenants with respect to Collateral made by Holdings herein shall only apply to Holdings Collateral.