PLEDGE OR HYPOTHECATION Clause Samples

PLEDGE OR HYPOTHECATION. In the event that any Limited Partner pledges or otherwise encumbers any of its Limited Partnership interest as security for repayment of a liability, any such pledge or hypothecation shall be made pursuant to a pledge or hypothecation agreement that requires the pledgee or secured party to be bound by all the terms and conditions of this Section 11.2, and the pledging Limited Partner shall provide notice of such pledge or encumbrance to the General Partner. The Partnership and the General Partner shall be entitled to be saved, indemnified, and held harmless by all interested parties to the transaction in respect to any distribution or other action taken in reliance upon any pledge, grant of security interest, lien, or encumbrance, or in respect to any such action taken in respect to an assignment.

PLEDGE OR HYPOTHECATION. Notwithstanding any other provisions hereof, a Member shall not pledge, hypothecate or encumber its interest in the Company, or any part thereof.

PLEDGE OR HYPOTHECATION. No Shareholder shall pledge, assign or hypothecate any or all of its Shares or any of his right or interest therein except as provided in this Agreement without the prior written consent of the Company. In order for the Company to consent pursuant to Paragraph 6 of this Agreement, the holders of 100% of the issued and outstanding Shares must approve of the proposed transaction.