HYPOTHECATION AGREEMENT Clause Samples
A Hypothecation Agreement is a contractual clause that allows a borrower to pledge assets as collateral to secure a loan, while retaining ownership and possession of those assets. In practice, this means that the lender has a legal right to seize the specified assets, such as inventory or receivables, if the borrower defaults on the loan, but the borrower can continue to use or sell the assets in the ordinary course of business. This clause is commonly used in commercial lending to provide security for the lender without disrupting the borrower's operations, thereby reducing the lender's risk of loss in case of non-payment.
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HYPOTHECATION AGREEMENT. Each of the Owners shall enter into a Hypothecation Agreement in a form satisfactory to Lender pursuant to which the Owners will agree to pledge their respective Parcels for the benefit of the Lender and pursuant to which the Owners will agree to account for the deposit of Rents into the Clearing Accounts in a manner which will insure that each Owner is properly credited for its respective share of the Rents.
HYPOTHECATION AGREEMENT. A Hypothecation Agreement, substantially in the form of EXHIBIT E hereto, duly executed by each Subsidiary of Borrower (other than Apollo) in favor of Bank.
HYPOTHECATION AGREEMENT. On the Initial Borrowing Date, the Company shall have duly authorized, executed and delivered the Hypothecation Agreement in the form of Exhibit H (as amended, modified or supplemented from time to time, the “Hypothecation Agreement”) and shall have delivered to the Collateral Agent, as Pledgee thereunder, proper financing statements as may be necessary or, in the reasonable opinion of the Collateral Agent, desirable, to perfect the security interests purported to be created by the Hypothecation Agreement, and the Hypothecation Agreement shall be in full force and effect.