Lessor Collateral Clause Samples
The 'Lessor Collateral' clause defines the assets or security interests that the lessor holds to protect its interests in a leasing arrangement. Typically, this clause outlines what property or financial guarantees the lessee must provide, such as a security deposit, a lien on leased equipment, or other forms of collateral. By specifying these requirements, the clause ensures that the lessor has recourse in the event of default or non-payment by the lessee, thereby reducing the lessor's financial risk and providing a clear mechanism for recovering losses.
Lessor Collateral. Upon the occurrence and continuance of any Loan Event of Default, Lessor will immediately upon receipt of all checks, drafts, cash or other remittances in payment of any of its accounts, contract rights or general intangible constituting part of Lessor Collateral, or in payment for any Lessor Collateral sold, transferred, leased or otherwise disposed of, or in payment or on account of its accounts, contracts, contract rights, notes, drafts, acceptances, general intangibles, choses in action and all other forms of obligation relating to any of Lessor Collateral so sold, transferred or otherwise disposed of, deliver any such items to Collateral Agent accompanied by a remittance report in form supplied or approved by Collateral Agent, such items to be delivered to Collateral Agent in the same form received, endorsed or otherwise assigned by Lessor where necessary to permit collection of items and, regardless of the form of such endorsement, Lessor hereby waives presentment, demand, notice of dishonor, protest and notice of protest.