Security Sharing Clause Samples
The Security Sharing clause establishes how security interests or collateral provided by a borrower are to be shared among multiple lenders or creditors. In practice, this clause outlines the procedures for distributing the proceeds from the enforcement of security, such as the sale of pledged assets, ensuring that all participating lenders receive their agreed-upon share according to a predetermined formula or priority. Its core function is to prevent disputes among creditors by clearly defining the allocation of security interests, thereby promoting fairness and transparency in multi-lender financing arrangements.
Security Sharing. Beneficiaries of Security shall be party to a Security Sharing Agreement which shall legislate for limitations on and a procedure for Enforcement Action and a procedure for sharing of security between different creditor groups as set out tin Part 4.
Security Sharing. The parties hereto acknowledge and agree that the Security Agreements, and the Liens created thereby, are being held by the Administrative Agent or the U.S. Collateral Agent, as applicable, as follows:
(a) if the BCPI Effective Event does not occur, to secure the Obligations for the benefit of GFL;
(b) if the BCPI Effective Event occurs and there are Obligations owing to the Lenders, to secure the Obligations for the benefit of the Lenders at a ratio equal to the Applicable Percentage;
(c) if the BCPI Effective Event occurs and there is no Obligations owing to GFL, to secure the Obligations for the benefit of BCPI; and
(d) if the BCPI Effective Event occurs and there is no Obligations owing to BCPI, to secure the Obligations for the benefit of GFL.
Security Sharing. Subject to contrary instructions from the Majority Lenders or contrary requirements of Law, the Security Agent may appropriate and apply all moneys received or realised by the Security Agent, after the Security has become enforceable in accordance with the Financing Documents through the exercise or enforcement of the Security, in or towards discharging the liability of the Borrower as follows:
Security Sharing. Subject to contrary instructions from the Majority Lenders or contrary requirements of Law, the Security Agent may appropriate and apply all moneys received or realised by the Security Agent, after the Security has become enforceable in accordance with the Financing Documents through the exercise or enforcement of the Security, in or towards discharging the liability of the Borrower as follows:
(a) firstly, in payment of all costs, charges, expenses and liabilities incurred and payments made by the Security Agent, the Facility Agent and any receiver, attorney, agent, delegate, sub-delegate or other person appointed by the Security Agent in accordance with the terms of the Security Documents in connection with the performance of its obligations hereunder or thereunder or the execution or purported execution of any powers, authorities or discretions vested in it pursuant hereto or thereto (including without limitation the remuneration of the Security Agent, the Facility Agent and of every such receiver or other person payable pursuant to the terms thereof);
(b) secondly, in payment to the Lenders of the Secured Indebtedness rateably in the proportion which each Lender's Outstandings bears to the Total Outstandings as follows:
(i) first, in payment pari passu and rateably of Secured Indebtedness, other than interest and principal amount, due to any Lender in the proportion that such Secured Indebtedness then due to each of the Lenders bears to the total of such Secured Indebtedness then due;
(ii) second, in payment pari passu and rateably of Secured Indebtedness comprising interest (including interest on overdue interest) which has accrued to the date of such application in the proportion that the amount of interest then due to each of the Lenders bears to the total amount of interest then due; and
(iii) third, in payment pari passu and rateably of all outstanding principal amount in the proportion that the amount of such outstanding principal due to each of the Lenders bears to the total amount of all outstanding principal then due. Pending such application such sums may be credited to any account which the Security Agent deems appropriate.
Security Sharing. Notwithstanding:
(a) the respective dates of execution of any Transaction Document or the order of registration of any Security; or
(b) the respective dates of advance of any moneys under any Transaction Document; or
(c) the respective dates upon which any moneys may be or become owing under any Transaction Document; or
(d) the repayment of any of the moneys secured by any Security; or
(e) anything contained in any Transaction Document; or
(f) any rule of law or equity or any other matter or thing whatever, the Security shall be held by the Security Agent for the benefit of the Agents and the Lenders without any preference or priority amongst themselves as continuing security for the payment by the Borrowers of all moneys owing under the Transaction Documents (including interest thereon and all other moneys payable to the Agents or the Lenders or any of them in relation thereto).