Common use of Permitted Pledge Clause in Contracts

Permitted Pledge. A Member may pledge, mortgage or hypothecate ("PLEDGE") all or any part of its Interest in the Company if such Pledge constitutes security for a loan incurred (i) to enable the Member to acquire the interest in the Company of a selling Member, or (ii) to make an additional Capital Contribution in excess of the Member's Committed Capital set forth in Exhibit A pursuant to this Agreement. If the Pledge is forfeited to satisfy such loan or is foreclosed upon, and the Membership Interest sold at a public or private sale or retained by the pledgee in full or partial satisfaction of the law, the Person who obtains the Interest shall not be deemed a Member hereunder unless approved by the Board pursuant to the terms of this Article XIV and the provisions of Section 14. 4 hereof shall apply.