Security Undertaking Clause Samples
A Security Undertaking clause requires one party to provide security or collateral to the other party as assurance for fulfilling its obligations under the agreement. This may involve pledging assets, providing guarantees, or establishing escrow arrangements to protect the interests of the beneficiary. By mandating such security, the clause helps mitigate the risk of non-performance or default, ensuring that the party receiving the undertaking has recourse if the other party fails to meet its commitments.
Security Undertaking. This loan is granted on an unsecured basis. The Borrower agrees and covenants not to grant security over any of its assets to a third party unless the Borrower has granted the same security to the Lender to secure the Borrower’s obligations hereunder on at least a pari passu basis with such other security, provided however that this provision shall not apply to any security over the assets of the Borrower granted to Anglo Pacific or any of its affiliates pursuant to a royalty agreement.