Springing Security Interest Clause Samples

A Springing Security Interest is a legal provision that creates a security interest in certain assets, but only upon the occurrence of a specified event or condition. For example, the security interest may not attach until the borrower defaults on a loan or breaches a covenant. This mechanism allows parties to delay the creation of a security interest until it is actually needed, thereby providing flexibility and addressing concerns about over-collateralization or regulatory requirements.
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Springing Security Interest. In connection with this Loan, Borrower and all of its affiliates shall execute in favor of Lender an Assignment of Deposit Account providing for a springing security interest in the Accounts (as defined in the Assignment of Deposit Account), in form and substance acceptable to Lender. Upon the occurrence of an Event of Default, Lender’s security interest in the Account shall immediately become effective. Upon the occurrence of an Event of Default, all Lender’s rights and remedies under this Agreement shall immediately be enforceable.
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Springing Security Interest. Upon the occurrence of any the following events: (a) The balances of cash and Cash Equivalents of the Borrower in accounts maintained at the Lender, exclusive of payroll accounts, are less than Two Million and 00/100 ($2,000,000.00) Dollars; or (b) The occurrence of an Event of Default while there exist any outstanding Loans and such Event of Default has not been cured by the Borrower, or waived by the Lender, within thirty (30) days; or (c) The Borrower requests a Loan (whether an initial Loan or an additional Loan), or the conversion of an existing Loan, while an Event of Default is continuing, regardless of whether or not the Borrower has had any opportunity to cure such Event of Default, or whether it has been continuing for thirty (30) days or any other a particular period; or (d) The Borrower has Loans outstanding in an aggregate amount equal to or exceeding Five Million ($5,000,000.00) Dollars (excluding any issued Letters of Credit) for a period of more than ninety (90) consecutive days; then, in such event, the Borrower shall forthwith, and, in any event within two (2) business days of notice from the Lender, execute and deliver to the Lender a security agreement (the “Security Agreement”) in the form attached hereto as Exhibit 3.1, granting to the Lender a first lien and security interest in the Collateral (as defined in the Security Agreement) (and subject to the filing of appropriate financing statements). Additionally, the Borrower hereby irrevocably constitutes and appoints the Lender as the Borrower’s true and lawful attorney, with full power of substitution, at the sole cost and expense of the Borrower but for the sole benefit of the Lender, to be exercised only upon such event, to execute the Security Agreement in the name of the Borrower. All powers conferred upon the Lender by this Agreement, being coupled with an interest, shall be irrevocable so long as any Obligation of the Borrower to the Lender shall remain unpaid.
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Springing Security Interest. The Obligations are subject to and secured by a springing Security Interest as follows:
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Springing Security Interest. Section 2.1 shall not become effective unless and until a Default has occurred under the Credit Agreement at which time the security interest granted pursuant to Section 2.1 shall automatically become effective and shall attach to the Collateral and shall thereafter remain in effect until the Secured Obligations have been paid or otherwise satisfied in full and the Commitment of each Lender has terminated.
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Springing Security Interest. In order to give effect to the agreement of Guarantor set forth in Section 4.4 hereof, effective immediately upon, but not prior to, the Triggering Event, Guarantor hereby pledges, assigns and transfers to the Administrative Agent, and grants to the Administrative Agent, for the ratable benefit of the Secured Parties, a security interest in one or more deposit accounts and/or securities accounts maintained with Administrative Agent containing an aggregate amount equal to the Cash Requirement (the “Collateral”), as collateral security for the prompt and complete payment and performance when due (whether at the stated maturity, by acceleration or otherwise) of the Guaranteed Obligations. On the date that the Indebtedness, or any part thereof, is due under the terms of the Credit Agreement (if such Indebtedness, or any part thereof, shall not have been paid when due), the Administrative Agent is hereby authorized to convert such Collateral to a cash collected balance and apply such amount to the Indebtedness or part thereof that is due. In the event that the balance of the Collateral shall exceed the Cash Requirement, so long as no Default has occurred which is continuing, upon request by the Guarantor, the Administrative Agent shall release to the Guarantor the amount of such excess.
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Springing Security Interest. Upon the occurrence of any the following events: (a) In the event that the cash balances of the Borrower, based on the monthly cash balance report provided to the Lender, are less than Two Million and 00/100 ($2,000,000.00) Dollars; or (b) The occurrence of an Event of Default while there exist any outstanding Loans and such Event of Default has not been cured by the Borrower, or waived by the Lender, within thirty (30) days; or (c) The Borrower requests a Loan, or the conversion of an existing Loan, while an Event of Default is continuing, regardless of whether or not the Borrower has had any opportunity to cure such Event of Default, or whether it has been continuing for thirty (30) days or any other a particular period; or (d) The Borrower has Loans outstanding in an aggregate amount equal to or exceeding Five Million ($5,000,000.00) Dollars (excluding any issued Letters of Credit) for a period of more than three (3) consecutive business days; then, in such event, the Borrower shall forthwith, and, in any event within two (2) business days of notice from the Lender, execute and deliver to the Lender a security agreement (the "SECURITY AGREEMENT") in the form attached hereto as Exhibit 3.1, granting to the Lender a first lien and security interest in all assets of the Borrower wherever located, excepting only real estate, (and subject to the filing of appropriate financing statements). Additionally, the Borrower hereby irrevocably constitutes and appoints the Lender as the Borrower's true and lawful attorney, with full power of substitution, at the sole cost and expense of the Borrower but for the sole benefit of the Lender, to be exercised only such event, to execute the Security Agreement in the name of the Borrower. All powers conferred upon the Lender by this Agreement, being coupled with an interest, shall be irrevocable so long as any Obligation of the Borrower to the Lender shall remain unpaid.
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Springing Security Interest 
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Related to Springing Security Interest

  • Continuing Security Interest This Agreement shall create a continuing security interest in the Pledged Property and shall: (i) remain in full force and effect until payment in full of the Obligations; and (ii) be binding upon the Company and its successors and heirs and (iii) inure to the benefit of the Secured Party and its successors and assigns. Upon the payment or satisfaction in full of the Obligations, the Company shall be entitled to the return, at its expense, of such of the Pledged Property as shall not have been sold in accordance with Section 5.2 hereof or otherwise applied pursuant to the terms hereof.

  • Collateral; Security Interest (a) Pursuant to the Custodial Agreement, the Custodian shall hold the Mortgage Loan Documents and the Pledged Securities as exclusive bailee, agent and securities intermediary, within the meaning of Article 8 of the Uniform Commercial Code, for the benefit of Agent on behalf of Lender pursuant to terms of the Custodial Agreement and shall deliver Trust Receipts (as defined in the Custodial Agreement) to Agent each to the effect, inter alia, that it has reviewed such Mortgage Loan Documents in the manner and to the extent required by the Custodial Agreement and identifying any deficiencies in such Mortgage Loan Documents as so reviewed. (b) All of Borrower's right, title and interest in, to and under each of the following items of property, whether now owned or hereafter acquired, now existing or hereafter created and wherever located, is hereinafter referred to as the "COLLATERAL": (i) all Mortgage Loans; (ii) all Mortgage Loan Documents, including, without limitation, all promissory notes and all Servicing Records, Servicing Agreements and any other collateral pledged or otherwise relating to such Mortgage Loans, together with all files, documents, instruments, surveys, certificates, correspondence, appraisals, computer programs (subject to any restrictions on transfer under any related licensing agreement), computer storage media, accounting records and other books and records relating thereto, including electronic records; (iii) all mortgage guaranties and insurance (issued by governmental agencies or otherwise) and any mortgage insurance certificate or other document evidencing such mortgage guaranties or insurance relating to any Mortgage Loan and all claims and payments thereunder; (iv) all other insurance policies and insurance proceeds relating to any Mortgage Loan or the related Mortgaged Property; (v) all Interest Rate Protection Agreements, relating to or constituting any and all of the foregoing; (vi) all Cash Collateral; (vii) all Pledged Securities;

  • Valid Security Interest This Agreement creates a valid and continuing security interest (as defined in the applicable UCC) in the Sold Property in favor of the Issuer, which is prior to all other Liens, other than Permitted Liens, and is enforceable against creditors of and purchasers from the Depositor.

  • Perfected Security Interest On the Closing Date, after giving effect to the filing of the FAA Filed Documents and the Financing Statements, Mortgagee shall have received a duly perfected first priority security interest in all of Owner's right, title and interest in the Aircraft, subject only to Permitted Liens.

  • Security Interests Absolute All rights of the Secured Parties and all obligations of the Debtors hereunder, shall be absolute and unconditional, irrespective of: (a) any lack of validity or enforceability of this Agreement, the Debentures or any agreement entered into in connection with the foregoing, or any portion hereof or thereof; (b) any change in the time, manner or place of payment or performance of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any consent to any departure from the Debentures or any other agreement entered into in connection with the foregoing; (c) any exchange, release or nonperfection of any of the Collateral, or any release or amendment or waiver of or consent to departure from any other collateral for, or any guarantee, or any other security, for all or any of the Obligations; (d) any action by the Secured Parties to obtain, adjust, settle and cancel in its sole discretion any insurance claims or matters made or arising in connection with the Collateral; or (e) any other circumstance which might otherwise constitute any legal or equitable defense available to a Debtor, or a discharge of all or any part of the Security Interests granted hereby. Until the Obligations shall have been paid and performed in full, the rights of the Secured Parties shall continue even if the Obligations are barred for any reason, including, without limitation, the running of the statute of limitations or bankruptcy. Each Debtor expressly waives presentment, protest, notice of protest, demand, notice of nonpayment and demand for performance. In the event that at any time any transfer of any Collateral or any payment received by the Secured Parties hereunder shall be deemed by final order of a court of competent jurisdiction to have been a voidable preference or fraudulent conveyance under the bankruptcy or insolvency laws of the United States, or shall be deemed to be otherwise due to any party other than the Secured Parties, then, in any such event, each Debtor’s obligations hereunder shall survive cancellation of this Agreement, and shall not be discharged or satisfied by any prior payment thereof and/or cancellation of this Agreement, but shall remain a valid and binding obligation enforceable in accordance with the terms and provisions hereof. Each Debtor waives all right to require the Secured Parties to proceed against any other person or entity or to apply any Collateral which the Secured Parties may hold at any time, or to marshal assets, or to pursue any other remedy. Each Debtor waives any defense arising by reason of the application of the statute of limitations to any obligation secured hereby.