Security Assignment and Agreement Sample Clauses

The Security Assignment and Agreement clause establishes that a party assigns certain rights or interests—often as collateral—to another party, typically a lender, to secure the performance of obligations under a contract. In practice, this clause may require the borrower to transfer rights in assets such as receivables, intellectual property, or equipment to the lender, who can then enforce these rights if the borrower defaults. Its core function is to provide the lender with a form of security, reducing their risk by ensuring they have recourse to specific assets if the borrower fails to meet their contractual commitments.