Springing Control Agreements Clause Samples
A Springing Control Agreement is a contractual provision that establishes a mechanism for a secured party, such as a lender, to gain control over a borrower's deposit or securities account only upon the occurrence of a specified event, typically a default. In practice, the agreement remains dormant until the triggering event occurs, at which point the secured party's rights to direct the disposition of funds or assets in the account become active. This clause is commonly used in lending arrangements to protect the lender's interests while allowing the borrower to freely use the account until a default, thereby balancing operational flexibility with risk mitigation.
Springing Control Agreements. Within sixty (60) days after the date hereof (or such later date approved by Collateral Agent), the Borrowers shall deliver to the Collateral Agent all Springing Control Agreements required to be delivered under this Agreement, in each case in a form and substance reasonably satisfactory to the Collateral Agent and duly executed by the parties thereto.
Springing Control Agreements. The Administrative Agent shall have received the duly executed springing control agreements, in form and substance satisfactory to the Administrative Agent in all respects.