Special Covenants With Respect to the Securities Collateral Clause Samples
The "Special Covenants With Respect to the Securities Collateral" clause sets out specific obligations and restrictions regarding the handling, maintenance, and use of securities pledged as collateral in a financial agreement. Typically, this clause may require the borrower to maintain the value of the securities, refrain from selling or transferring them without consent, and ensure that the collateral remains free of other claims or encumbrances. Its core practical function is to protect the lender’s interest in the collateral by ensuring its value and availability, thereby reducing the lender’s risk in the event of default.
Special Covenants With Respect to the Securities Collateral. The Grantor agrees that upon the execution of and as a condition precedent to the effectiveness of this Agreement all certificates or instruments representing or evidencing the Securities Collateral shall be delivered to and held by or on behalf of the Secured Parties pursuant hereto and shall be in suitable form for transfer by delivery or, as applicable, shall be accompanied by such Grantor’s endorsement, where necessary, or duly executed instruments of transfer or assignment in blank, all in form and substance satisfactory to the Secured Parties. For purposes of this Section 9, delivery of all such items to the Trust pursuant to that certain Security Agreement dated as of August 10, 2001 between Grantor and the Trust shall also be deemed delivery of such items to Secured Parties as required hereunder.
Special Covenants With Respect to the Securities Collateral. IRREVOCABLE PROXY.
(a) Form of Securities Collateral. Agent shall have the right at any time to exchange certificates or instruments representing or evidencing Securities Collateral for certificates or instruments of smaller or larger denominations. As of the Closing Date, each limited liability company agreement governing the Pledged Equity shall expressly provide that such Pledged Equity is a security governed by Article 8 of the UCC (and, in the case of any Grantor that is organized under the laws of Canada or a province or territory thereof, such Grantor represents and warrants that all interests in partnerships or limited liability companies are a “security” for the purposes of the STA (if applicable)).
Special Covenants With Respect to the Securities Collateral