No Liens; No Sale of Collateral Sample Clauses
The "No Liens; No Sale of Collateral" clause prohibits the borrower from placing any additional liens or encumbrances on the collateral and from selling, transferring, or otherwise disposing of the collateral without the lender's consent. In practice, this means the borrower cannot use the collateral to secure other debts or sell it to third parties while the loan is outstanding. This clause ensures that the lender's security interest in the collateral remains intact and undiluted, thereby protecting the lender's ability to recover the loan amount if the borrower defaults.
No Liens; No Sale of Collateral. Such Pledgor will not create, assume, incur or permit or suffer to exist any adverse claim or other Lien on any of the Collateral other than Permitted Liens and shall not enter into any document, instrument or agreement (other than this Agreement) which prohibits or purports to prohibit the creation or assumption of any Lien on any of the Collateral. Except as expressly permitted by any Loan Document, such Pledgor will not sell, lease, lend, assign, transfer or otherwise dispose of all or any portion of the Collateral (or any interest therein).
No Liens; No Sale of Collateral. The Pledgor will not create, assume, incur, permit or suffer to exist, or to be created, assumed or incurred, any lien, security interest, pledge, hypothecation or other encumbrance (each a "Lien") on any of the Collateral (or any interest therein), and will not, without the prior written consent of the Secured Party, sell, assign, transfer or otherwise dispose of (or enter into any agreement or understanding to do any of the foregoing), all or any portion of the Collateral (or any interest therein).