Lien on Cash Collateral Clause Samples
A Lien on Cash Collateral clause establishes a lender's legal right to claim or control a borrower's cash or cash-equivalent assets as security for a loan or obligation. In practice, this means that if the borrower defaults, the lender can access the specified cash accounts or deposits to recover the owed amounts. This clause typically applies to funds held in designated accounts, such as escrow or reserve accounts, and may require the borrower to maintain certain balances. Its core function is to reduce the lender's risk by providing a readily accessible source of repayment, thereby enhancing the security of the loan.
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Lien on Cash Collateral. This Agreement sets forth certain additional requirements to deliver Cash Collateral. Each Borrower hereby grants to Administrative Agent a security interest (subject, with respect to TCIL, to the TCIL Collateral Documents) in all such cash, all deposit accounts into which such cash is deposited, all balances in such accounts and all proceeds of the foregoing. Cash Collateral shall be maintained in blocked, interest bearing deposit accounts with the Administrative Agent.
Lien on Cash Collateral. Each Borrower hereby grants to the Funding Agent for the Tranche with respect to which Cash Collateral is being delivered a lien on and security interest in all such cash, all deposit accounts into which such cash is deposited, all balances in such accounts and all proceeds of the foregoing. Cash Collateral shall be maintained in blocked, interest bearing deposit accounts with the applicable Funding Agent.
Lien on Cash Collateral. Each Borrower hereby grants to each of (a) the Funding Agent for the Tranche with respect to which Cash Collateral is being delivered and (b) if such Cash Collateral is being delivered at any time prior to the Security Agency Agreement Release Date, Collateral Agent, a lien on and security interest in all such cash, all deposit accounts into which such cash is deposited, all balances in such accounts and all proceeds of the foregoing; provided that (i) until the Security Agency Agreement Release Date, such Lien shall be subject to the terms of the Security Agency Agreement and (ii) on the Security Agency Agreement Release Date, such Lien shall automatically without any further action of any Person cease to be in favor of the Collateral Agent and shall thereafter be solely in favor of such Funding Agent. Cash Collateral shall be maintained in blocked, interest bearing deposit accounts with the applicable Funding Agent (acting as an agent for Collateral Agent at all times the Collateral Agent has a security interest therein).