Springing Lockboxes Sample Clauses
A Springing Lockboxes clause establishes a mechanism by which control over certain financial accounts is automatically transferred to a secured party upon the occurrence of a specified event, such as a default. In practice, this means that while the borrower retains access to the accounts under normal circumstances, if a trigger event occurs, the lender gains exclusive control over the funds in those accounts, often to ensure repayment of a loan. This clause is primarily used to protect lenders by ensuring they can quickly secure collateral or cash flow in the event of borrower distress, thereby reducing the risk of loss.
Springing Lockboxes. 41 Section 5 Definitions......................................................41 5A. Definitions......................................................41
Springing Lockboxes. None of the springing lockboxes referred to on the attached Restrictions Schedule have been activated and, to the Company's knowledge, no condition exists that would give rise to the activation of any such springing lockbox solely by reason of the passage of time or the giving of notice by any Person.