Security Interests Invalid Clause Samples
The 'Security Interests Invalid' clause establishes that any security interests, liens, or encumbrances purportedly created under the agreement are not valid or enforceable. In practice, this means that neither party can claim a legal right to the other party’s assets as collateral for obligations arising from the contract. For example, if one party defaults, the other cannot seize property or assets based on the agreement alone. This clause’s core function is to prevent unintended or unauthorized creation of security interests, thereby reducing legal risk and ensuring that asset ownership remains clear and unencumbered by the contract.
Security Interests Invalid. Any of the Security Interests over a material portion of the Collateral cease to be validly perfected (subject to applicable Reservations) in favor of the Collateral Agent on behalf of the Secured Parties, and five Business Days have elapsed after the Collateral Agent or Intercreditor Agent gave notice to the Borrower thereof.
Security Interests Invalid. Any of the Security Interests over a material portion of the Collateral ceases to be validly perfected in favor of the Collateral Agent on behalf of the Secured Parties.
Security Interests Invalid. Any security interests created or purported to be created by or pursuant to the Original CSA as amended and restated by this Agreement, or the other Security Documents shall, in the reasonable opinion of counsel to the Secured Parties, not be valid, perfected, first priority security interests in favor of the Collateral Trustee for the benefit of the Secured Parties (except to the extent specified in the forms of legal opinions delivered in accordance with the Original CSA;
Security Interests Invalid. Liens purported to be created by or under the Security Documents in any (i) Mining Concession, (ii) New York Account, (iii) Material Asset, (iv) Material Project Document or (v) material portion of any other Collateral shall fail or cease to be validly perfected first priority Liens having first priority over all other Liens (other than Permitted Liens which are entitled to mandatory priority under applicable Government Rules) and valid assignments of rights, as applicable, in favor of the Secured Parties; any material provision of any Security Document shall at any time for any reason cease to be valid and binding and in full force and effect; or the validity or enforceability of any material provision of any Security Document shall be contested by any party thereto (other than a Secured Party) or any Governmental Authority;
Security Interests Invalid. Any security interests created or purported to be created by or pursuant to this Agreement or any Security Document shall, in the reasonable opinion of counsel to the Secured Parties, not be valid, perfected, first priority security interests in favor of the Collateral Trustee for the benefit of the Secured Parties (except to the extent specified in the forms of legal opinions set forth in Appendix L);