No New Security Interest Clause Samples
The "No New Security Interest" clause prohibits a party from granting any new security interests, liens, or encumbrances over specified assets during the term of the agreement. In practice, this means the party cannot use the covered assets as collateral for new loans or obligations, ensuring that the assets remain unencumbered and available to satisfy existing commitments. This clause is essential for protecting the interests of existing secured parties by preventing dilution of their security or priority in the event of default.
No New Security Interest. No part of this Agreement is intended to or will create a registrable security interest.
No New Security Interest. No part of this Deed is intended to or will create a registrable Security Interest.
No New Security Interest. Target will not enter into or assume any Security Interest or other title retention agreement, permit any Security Interest of any kind to attach to any of its assets or properties, whether now owned or hereafter acquired, or guarantee or otherwise become contingently liable for any obligation, security or dividend of another Person, except obligations arising by reason of endorsement for collection and other similar transactions in the Ordinary Course of Business.