Security Interest and Collateral Covenants Sample Clauses
The 'Security Interest and Collateral Covenants' clause establishes the lender's legal right to claim specific assets of the borrower as collateral to secure repayment of a loan or obligation. It typically outlines the types of assets pledged, the borrower's responsibilities to maintain or protect the collateral, and the lender's rights in the event of default, such as seizing or selling the collateral. This clause is essential for reducing the lender's risk by providing a clear mechanism for asset recovery if the borrower fails to meet their obligations.
Security Interest and Collateral Covenants. 1Security Interest . To secure the payment and performance of the Obligations, each Borrower hereby mortgages, pledges and assigns to Lender for itself, and as agent for its Affiliates, all of the Collateral and grants to Lender for itself, and as agent for its Affiliates, a security interest and Lien in and upon all of the Collateral. Each Borrower shall, at Lender’s request, at any time and from time to time, authenticate, execute and deliver to Lender such financing statements, documents and other agreements and instruments (and pay the cost of filing or recording the same in all public offices deemed necessary or desirable by Lender) and do such other acts and things or cause third parties to do such other acts and things as Lender may deem necessary or desirable, in its sole discretion, in order to establish and maintain a valid, attached and perfected security interest in the Collateral in favor of Lender (free and clear of all other Liens except for Permitted Liens) to secure payment of the Obligations, and in order to facilitate the collection of the Collateral.
Security Interest and Collateral Covenants. 30 Section 6.1 Security Interest 30 Section 6.2 Collection of Accounts and Proceeds of Collateral 30 Section 6.3 Verification of Accounts 31 Section 6.4 Disputes, Returns and Adjustments 31 Section 6.5 Invoices 31 -i- DIP Loan and Security Agreement ▇▇▇▇-▇▇▇▇-▇▇▇▇ v.3.docx
Security Interest and Collateral Covenants. (a) To secure the prompt payment and performance in full when due, whether by lapse of time, acceleration, mandatory prepayment or otherwise, of the Loan and Note and all other Obligations (as defined below), Borrower hereby grants to Lender, for itself and for the benefit of its successors and assigns, a continuing security interest in, and a right to set off against, any and all right, title and interest of Borrower in and to the Collateral. “Obligations” means (a) all advances to, and debts, liabilities, obligations, covenants and duties of, any Loan Party arising under any Credit Document or otherwise with respect to the Loan or Note, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising and including interest and fees that accrue after the commencement by or against any Loan Party or any Affiliate thereof of any proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding. “Affiliate” means, with respect to any Person, any Person that directly or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such first Person. A Person shall be deemed to control another Person (“Control” or “Controlling”) if such first Person possesses, directly or indirectly, the power to direct, or cause the direction of, the management and policies of the second Person, whether through the ownership of voting securities, common directors, trustees or officers, the power to appoint common directors, trustees or officers by contract or otherwise. “Debtor Relief Laws” means the Bankruptcy Code of the United States, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws of the United States or other applicable jurisdictions from time to time in effect and affecting the rights of creditors generally. “Person” means an individual, a corporation, a partnership, an association, a trust or any other entity or organization, including a government or political subdivision or any agency or instrumentality thereof.
Security Interest and Collateral Covenants