Priority and Collateral Security Clause Samples
The "Priority and Collateral Security" clause establishes the lender's right to receive repayment ahead of other creditors by securing the loan with specific assets of the borrower. In practice, this clause details the types of collateral provided—such as real estate, equipment, or receivables—and outlines the lender's priority position in the event of default or insolvency. Its core function is to protect the lender by ensuring they have a legal claim to certain assets, thereby reducing the risk of loss if the borrower fails to meet their obligations.
Priority and Collateral Security. FNV Group will grant to the Indenture Trustee for the benefit of the holders of the New Senior Notes (other than with respect to FNV Group's obligation under the New Senior Notes Indenture to pay Contingent Interest) a security interest in all of the capital stock of FNV Capital, which shall be junior to the first priority perfected security interest granted to Berkadia as described below and which shall be released upon payment in full of all interest (other than Contingent Interest) on and principal of the New Senior Notes. Until such time as all obligations under the Berkadia Loan and related guarantees are paid in full or otherwise satisfied, the security interest to be granted to the Indenture Trustee will be junior to the perfected, first priority security interest in the capital stock of FNV Capital granted to Berkadia to secure FNV Group's guarantee of the Berkadia Loan. The Indenture Trustee and the holders of the New Senior Notes will have no right to take action to enforce or otherwise realize on the security interest held by the Indenture Trustee unless and until all obligations under the Berkadia Loan and related FNV Group guarantee have been paid in full or otherwise satisfied or released. Neither the indenture governing the New Senior Notes nor the pledge agreement effecting the grant of the security interest (the "Pledge Agreement") will ---------------- restrict the sale of collateral, other than as required by the Trust Indenture Act of 1939, as amended. The payment of Contingent Interest will not be secured by the security interest or otherwise. Contingent Interest shall constitute general unsecured obligations of FNV Group.
Priority and Collateral Security. 4.1 Superpriority Claims and Collateral Security
4.2 No Discharge; Survival of Claims
Priority and Collateral Security. 43 8.1. Superpriority Claims and Collateral Security.................43 8.2. Collateral Security Perfection...............................44 8.3. No Discharge; Survival of Claims.............................44
Priority and Collateral Security. (a) The Borrower hereby represents, warrants and covenants that, upon entry of the Interim Borrowing Order or the Final Borrowing Order, whichever first occurs, (a) the Obligations shall at all times constitute a Super-Priority Claim having priority, pursuant to Section 364(c)(1) of the Bankruptcy Code and as otherwise provided herein or in the Orders, subject only to the Carve Out and other than in respect of the Excluded Assets, and (b) pursuant to Section 364(c)(2) and (3) of the Bankruptcy Code and the Security Documents, the Obligations shall at all times be secured by a perfected security interest (i) in all of the assets, whether now owned or hereafter acquired of the Borrower, pursuant to the terms of the Security Documents, other than Excluded Assets, and (ii) a first priority perfected pledge, in favor of the Collateral Agent, for the benefit of the Lenders and the Agents, of the capital stock or other equity interests of each Subsidiary of the Borrower, subject only to (A) Permitted Prior Liens, and (B) the Carve Out; PROVIDED that the priority of such Lien securing the Obligations, to the extent the proceeds thereof shall have been used to repay (or provide cash collateral for) the Pre-Petition Lender Debt and to the extent of any commitment under the Pre-Petition Agreement, shall also be equitably subrogated to such Lien priority as was enjoyed by the Liens securing the Pre-Petition Lender Debt prior to the repayment (or cash collateralization) thereof on the Closing Date. The security interests securing the Obligations shall not be subject to Section 551 of the Bankruptcy Code.
(b) The Borrower agrees to take all action that the Agents or any Lender may reasonably request as a matter of nonbankruptcy law to perfect and protect the Agents' and the Lenders' Liens upon the Collateral and for such Liens to obtain the priority therefor contemplated hereby, including, without limitation, executing and delivering such mortgages and related documents and instruments, financing statements, providing such notices and assents of third parties, obtaining such governmental approvals and providing such other instruments and documents in recordable form as the Agents or any Lender may reasonably request.
(c) The Borrower agrees that (i) the Obligations shall not be discharged by the entry of an order confirming a Reorganization Plan (and the Borrower, pursuant to Section 1141(d)(4) of the Bankruptcy Code, hereby waives any such discharge), (ii) the Super-Pr...
Priority and Collateral Security. Section 8.01. Superpriority Claims and Collateral Security Section 8.02. Collateral Security Perfection
Priority and Collateral Security. 49 6.2. Guaranty........................................................................................50
Priority and Collateral Security. 58 9-1 -SUPERPRIORITY CLAIMS AND COLLATERAL SECURITY.............. 58 9-2 -GRANT OF SECURITY INTEREST................................ 58 9-3 -COLLATERAL SECURITY PERFECTION............................ 59 9-4 -EXTENT AND DURATION OF SECURITY INTEREST.................. 60
Priority and Collateral Security. 65 SECTION 2.28. Mitigation Obligations; Replacement of Lenders...............................67 SECTION 2.29. Interest Limitation..........................................................68
Priority and Collateral Security