Security for Hedging Contracts Clause Samples

Security for Hedging Contracts. The Agent and the Lenders acknowledge that the counterparties to the Hedging Contracts required by Section 15(r) or permitted by Section 16(n) will require a pari passu Lien upon all or a portion of the production of the Oil and Gas Real Properties subject to such Hedging Contracts and the Cash Proceeds therefrom as security for the obligations of the Borrower and the other Restricted Persons under the Hedging Contracts. Upon the Borrower's request, the Agent will, if necessary, on behalf of the Lenders, enter into intercreditor agreements with the counterparties to the Hedging Contracts establishing that the Lender's Liens upon such production from the Oil and Gas Real Properties and the Cash Proceeds therefrom rank pari passu with any Liens in favor of the counterparties to the Hedging Contracts required by Section 15(r) or permitted by Section 16(n), with any such intercreditor agreement to be on terms and conditions acceptable to the Agent and the counterparties.