SECURITY INTEREST OF BANK IN COLLATERAL Sample Clauses
The 'Security Interest of Bank in Collateral' clause establishes the bank's legal right to claim certain assets (collateral) provided by the borrower as security for a loan or credit facility. In practice, this means that if the borrower defaults on their obligations, the bank can seize and sell the specified collateral, such as equipment, inventory, or receivables, to recover the outstanding debt. This clause is essential for protecting the bank's interests by reducing its risk of loss and ensuring it has a clear, enforceable claim to specific assets if the borrower fails to repay.
SECURITY INTEREST OF BANK IN COLLATERAL. 5.1 As security for the payment and performance of all Liabilities, Bank shall have and is hereby granted a continuing lien on, a security interest in and a right of set-off against the following Collateral:
(a) all Accounts of Borrower, whether now or hereafter existing, created, arising or acquired;
(b) all Inventory of Borrower, whether now or hereafter existing, created, arising or acquired;
(c) all general intangibles of Borrower, whether now or hereafter existing, created, arising, or acquired;
(d) all books and records now owned and hereafter acquired relating to Collateral and all files, correspondence, computer programs, tapes, disks and related data processing software owned Borrower or in which Borrower has an interest that contains information concerning or relating to Collateral or any item thereof; and
(e) all Proceeds and products of all of the foregoing, including, without limitation, insurance proceeds. No submission by Borrower to Bank of any schedule or other particular identification of Collateral shall be necessary to vest in Bank a security interest in each and every item of Collateral now existing or hereafter acquired, but rather, such security interest shall vest in Bank immediately upon the creation or acquisition of any item of Collateral, without the necessity for any other or further action by Borrower or Bank.
5.2 To the extent applicable, the Texas Business and Commerce Code governs the security interests provided for herein. In connection therewith, Borrower shall take such steps and execute and deliver such financing statements and other papers as Bank may from time to time request.
5.3 If, by reason of location of Collateral or otherwise, the creation, validity, or perfection of security interests provided for herein are governed by the law of a jurisdiction other than Texas, Borrower shall take such steps and execute and deliver such papers as Bank may from time to time request to comply with the Uniform Commercial Code, the Uniform Trust Receipts Act, the Factors Lien Act, the Federal Food Security Act, or other laws of other states or jurisdictions. Borrower hereby appoints and empowers Bank, or any employee of Bank which Bank may designate for the purpose, as attorney-in-fact, to execute on its behalf any financing statements which, in Bank's sole judgment, are necessary to be filed in order to perfect or preserve the perfection of Bank's security interests granted hereby.
5.4 As additional security for the payment and...
SECURITY INTEREST OF BANK IN COLLATERAL. As security for the payment and performance of all Liabilities, BANK shall have, and is hereby granted a continuing security interest in the following Collateral, whether now owned or existing or hereafter created, acquired or arising and wheresoever located:
(i) The Truck Equipment described on Exhibit "A" hereto and (ii) all Truck Equipment or other Equipment and other personal property of BORROWER purchased with the proceeds of the Loan;
(b) All goods, instruments, certificates or other documents of title, policies and certificates of insurance, securities, chattel paper, deposits, cash or other property owned by BORROWER or in which BORROWER has an interest which are now or may hereafter be in the possession of BANK or as to which BANK may now or hereafter control possession by documents of title or otherwise;
(c) Proceeds and products (including tort and insurance claims) of all of the foregoing.
SECURITY INTEREST OF BANK IN COLLATERAL. As security for the payment and performance of all Liabilities, BANK shall have, and is hereby granted a
SECURITY INTEREST OF BANK IN COLLATERAL