Lien Documents; Collateral Generally Clause Samples
The "Lien Documents; Collateral Generally" clause establishes the requirements and procedures for creating, perfecting, and maintaining security interests (liens) in collateral provided by a borrower to secure a loan or other obligation. It typically outlines the types of documents that must be executed, such as security agreements, financing statements, or mortgages, and may specify the types of assets covered, like inventory, equipment, or real estate. By clearly defining the process and documentation needed to secure the lender's interest in the collateral, this clause ensures the lender has enforceable rights to the collateral in the event of default, thereby reducing credit risk and protecting the lender’s interests.
Lien Documents; Collateral Generally. (a) At Closing and thereafter as Lender may request from time to time in its reasonable discretion, Borrower shall execute and deliver to Lender, or have executed and delivered (all in form and substance satisfactory to Lender in its discretion) any agreements, documents, instruments, and writings deemed reasonably necessary by Lender to evidence, perfect, or protect Lender’s Lien and security interest in the Collateral, whether now owned or hereafter acquired, required under this Agreement.
(b) Borrower shall bear the risk of loss on all Collateral, regardless of whether such Collateral is in the possession or control of Borrower, Lender, a bailee or any other Person.
(c) Borrower hereby authorizes Lender to file all financing statements, continuations and amendments to financing statements describing the Collateral (which description may use the term “all assets” or words of similar import) in any filing office as Lender, in its discretion may determine, in each case naming Borrower as debtor. Borrower agrees to comply with the requirements of all federal and state laws and requests of Lender in order for Lender to have and maintain a valid and perfected first priority security interest in the Collateral including, without limitation, executing and causing any other person to execute such documents as Lender may require to obtain control (as defined in the UCC) over all deposit accounts, electronic chattel paper, letter of credit rights, commercial tort claims and investment property to the extent a Lien is granted to Lender on such items under the Loan Documents.
(d) Borrower shall do and hereby authorizes Lender to do anything further that may be lawfully required by Lender to secure Lender’s interests in the Collateral and effectuate the intentions of this Agreement. With respect to any property leased by Borrower, upon request of Lender, Borrower shall use commercially reasonable efforts to enter into, and cause any landlord to enter into a Landlord’s Waiver and Consent in form and substance substantially similar to Exhibit E, attached hereto.
(e) Borrower shall immediately deliver to Lender all items of Collateral in which Lender must take possession to obtain a perfected security interest (in each case, accompanied by stock powers, endorsements, allonges or other instruments of transfer duly executed in blank), including all notes, certificates, and documents of title, chattel paper, warehouse receipts, instruments, and other similar instruments co...