Common use of Security Collateral Clause in Contracts

Security Collateral. (a) Such Grantor's Pledged Stock, if any, has been and when issued to any Grantor hereafter will be duly authorized and validly issued, and such Pledged Stock is fully paid, non-assessable and freely transferable to the Collateral Trustee. An appropriate notation has been or will be placed on the stock ledger or other books and records of the respective issuer of such Pledged Stock in the case of Pledged Stock included in the Initial Perfection Collateral (and, subject to the exceptions contained in Section 16.02 of the Indenture, in the case of Pledged Stock that is not Initial Perfection Collateral or that is hereafter acquired by the Grantors, will be so placed on the stock ledger or other books and records of the respective issuer of such stock pledged hereunder) in order to reflect the pledge in favor of the Collateral Trustee for the ratable benefit and security of the Holders created or provided for in this Agreement. Each of such Grantor's Pledged Notes, if any, has been duly authorized, authenticated or issued and delivered, and is the legal, valid and binding obligation of the issuer or issuers thereof, is freely transferable to the Collateral Trustee and is not in default.

Security Collateral. (a) Such Grantor's Pledged Stock, if any, has been and when issued to any Grantor hereafter will be duly authorized and validly issued, and such Pledged Stock is fully paid, non-assessable and freely transferable to the Collateral Trustee. An appropriate notation has been or will be placed on the stock ledger or other books and records of the respective issuer of such Pledged Stock in the case of Pledged Stock included in the Initial Perfection Collateral (and, subject to the exceptions contained in Section 16.02 of the Indenture, in the case of Pledged Stock that is not Initial Perfection Collateral or that is hereafter acquired by the Grantors, will be so placed on the stock ledger or other books and records of the respective issuer of such stock pledged hereunder) in order to reflect the pledge in favor of the Collateral Trustee for the ratable benefit and security of the Holders created or provided for in this Agreement. Each of such Grantor's Pledged Notes, if any, has been duly authorized, authenticated or issued and delivered, and is the legal, valid and binding obligation of the issuer or issuers thereof, is freely transferable to the Collateral Trustee and is not in default.