OTHER LIEN Clause Samples
The "Other Lien" clause defines the rights and restrictions regarding the creation or existence of additional liens on the property or asset covered by the agreement. Typically, this clause prohibits the borrower or asset owner from granting any new liens or security interests to third parties without the lender's consent, ensuring that the lender's claim remains senior or protected. By doing so, it prevents the dilution of the lender's security and reduces the risk that the asset will be encumbered by competing claims, thereby safeguarding the lender's interests.
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OTHER LIEN. Any Obligor shall have caused or permitted a security interest or Lien, perfected or otherwise, other than the security interest and Liens specifically provided for or permitted hereunder, to be created in any of its assets, or shall have failed to take any action requested by Bank to perfect or protect the security interests and Liens provided for herein.
OTHER LIEN. 44 8.5 INSOLVENCY............................................ 44 8.6 JUDGMENT OR LIEN...................................... 45 8.7 NONCOMPLIANCE WITH LEASES OR LAWS..................... 45 8.8 ORGANIZATIONAL CHANGE................................. 45 8.9 INSECURITY............................................ 45 8.10
OTHER LIEN. Any other Lien so long as the amount of indebtedness secured by such Lien and all other Liens that do not otherwise constitute Permitted Liens does not exceed $20,000,000 at any time outstanding in the aggregate for the Company and all Subsidiaries; provided, however, that if, notwithstanding this Section 8.07, any Lien (other than a Permitted Lien) shall be created or arise, the Loans, the Notes, the L/C Participations and the Canadian L/C Participations shall be secured by such Lien equally and ratably with the other Debt secured thereby, and the holder of such other Debt, by accepting such Lien, shall be deemed to have agreed thereto and to share with the Banks, on that basis, the proceeds of such Lien, whether or not the Banks' security interest shall be perfected; provided further, however, that notwithstanding such equal and ratable securing and sharing, the existence of such Lien shall constitute a Default by the Company in the performance or observance of this Section 8.07.
OTHER LIEN. There are no other liens, security interests, or mortgages against any of the property given as Collateral other than as disclosed in this agreement.
OTHER LIEN