Security Transactions Clause Samples
The 'Security Transactions' clause defines the rules and procedures governing the creation, perfection, and enforcement of security interests in assets or property under the agreement. It typically outlines the types of collateral involved, the rights and obligations of both the secured party and the debtor, and the steps required to register or notify third parties of the security interest. This clause ensures that the lender or secured party has a legally recognized claim over specified assets, thereby reducing credit risk and providing a clear mechanism for asset recovery in the event of default.
Security Transactions. Provided that the transaction (“Security Transaction”) takes place on identical terms for all Parties, NBFPI shall have the right to cause all Parties to (i) participate in a de-listing of the ADSs from the NASDAQ Global Market and a subsequent new initial public offering (IPO) of the Company’s shares, (ii) sell securities issued by the Company to an independent, bona fide third party, (iii) enter into a partnership or joint venture agreement with an independent, bona fide third party stipulating a future acquisition of securities of the Company by the said third party, and (iv) agree on a merger with an independent, bona fide third party whereby the Company is the discontinuing entity.
Security Transactions