Common use of Security Collateral Clause in Contracts

Security Collateral. The Borrower may, in its sole discretion, designate collateral (the “Collateral”) as it deems fit, as security for the Borrower’s obligations hereunder, which Collateral may be, but is not required to be, real property, a letter of credit with a financial institution determined by the Borrower in its sole discretion, or pledged membership interests, provided that the net fair market value of the Collateral (net of any outstanding monetary liens) shall not be less than the principal balance of this Note as of the date of any such designation. Upon the Borrower’s designation of Collateral, each of the Borrower and the Lender shall timely execute any and all documents necessary or advisable in order to properly grant a security interest upon the Collateral in favor of the Lender.

Security Collateral. The Borrower may, in its sole discretion, designate collateral (the “Collateral”"COLLATERAL") as it deems fit, as security for the Borrower’s 's obligations hereunder, which Collateral may be, but is not required to be, real property, a letter of credit with a financial institution determined by the Borrower in its sole discretion, or pledged membership interests, provided that the net fair market value of the Collateral (net of any outstanding monetary liens) shall not be less than the principal balance of this Note as of the date of any such designation. Upon the Borrower’s 's designation of Collateral, each of the Borrower and the Lender shall timely execute any and all documents necessary or advisable in order to properly grant a security interest upon the Collateral in favor of the Lender.