Subsidiary Pledge Clause Samples
A Subsidiary Pledge clause establishes that a subsidiary company is granting a security interest in its assets to secure obligations, typically those of itself or its parent company, under a financing arrangement. In practice, this means the subsidiary's assets—such as inventory, receivables, or equipment—can be claimed by the lender if the borrower defaults on the loan. This clause is commonly used in group financing structures to provide additional collateral and enhance the lender's security, thereby reducing the lender's risk and potentially enabling more favorable loan terms for the borrower.
Subsidiary Pledge. Upon the creation or acquisition of any Subsidiary, the Parent shall cause such Subsidiary to execute and deliver a Joinder Agreement and such other documentation as the Agent may request to cause such Subsidiary to evidence, perfect, or otherwise implement the guaranty and security for repayment of the Obligations contemplated by the Master Guaranty and the Amended and Restated Master Security Agreement.
Subsidiary Pledge. 23 Section 9.6 Further Agreement by Guarantor............................24
Subsidiary Pledge. Within forty-five days of the creation or acquisition of any Subsidiary, other than the creation or acquisition of a Restricted Group Member or an Acquisition Subsidiary, the Parent shall cause such Subsidiary to execute and deliver a Subsidiary Joinder Agreement and such other documentation as the Agent may request to cause such Subsidiary to evidence, perfect, or otherwise implement the guaranty and security for repayment of the Obligations contemplated by a THIRD AMENDED AND RESTATED CREDIT AGREEMENT, Page 41 Guaranty, the Subsidiary Security Agreement and, if applicable, a Subsidiary Pledge Agreement. Upon the earlier to occur of: (i) the date that is nine months from the date of the creation of any Acquisition Subsidiary (that is not a Restricted Group Member) or (ii) the date that is forty-five days after the date of the consummation of the acquisition for which the Acquisition Subsidiary was created, the Parent shall cause such Acquisition Subsidiary (that is not a Restricted Group Member) to execute and deliver a Subsidiary Joinder Agreement and such other documentation as the Agent may request to cause such Acquisition Subsidiary to evidence, perfect, or otherwise implement the guaranty and security for repayment of the Obligations contemplated by a Guaranty, the Subsidiary Security Agreement and, if applicable, a Subsidiary Pledge Agreement. Within forty-five days of the creation or acquisition of any Restricted Group Member (other than Friends LP and FGP) which is not restricted by law or agreement from joining as an Obligated Party, the Parent shall cause such Restricted Group Member to execute and deliver a Subsidiary Joinder Agreement and such other documentation as the Agent may request to cause such Restricted Group Member to evidence, perfect, or otherwise implement the guaranty and security for repayment of the Obligations contemplated by a Guaranty, the Subsidiary Security Agreement and, if applicable, a Subsidiary Pledge Agreement; provided, however, if such Restricted Group Member is an Acquisition Subsidiary, then such execution and delivery shall take place before the earlier to occur of: (i) the date that is nine months from the date of the creation of such Restricted Group Member or (ii) the date that is forty-five days after the date of the consummation of the acquisition for which such Restricted Group Member was created.
Subsidiary Pledge. Upon the creation or acquisition of any Subsidiary, Holding shall cause such Subsidiary to execute and deliver to Agent a Subsidiary Guaranty, a Subsidiary Security Agreement, a Mortgage and such other documentation as the Agent may request to cause such Subsidiary to evidence, perfect or otherwise implement the guaranty and security for the repayment of the Obligations contemplated by a Subsidiary Guaranty, Subsidiary Security Agreement and Mortgage. If any Subsidiary is created or acquired after the Closing Date, the Borrower shall execute and deliver to the Agent an amendment to the Borrower Security Agreement describing as collateral thereunder the stock of or other ownership interest in the new Subsidiary and the Borrower shall deliver the certificates representing such stock or other interests to the Agent together with undated stock or other powers duly executed in blank.
Subsidiary Pledge. To secure the prompt payment and performance of all of the Obligations under the Loan Documents and its guarantee made in this Article 9, Guarantor hereby grants to Lender a continuing security interest in all of Guarantor's assets or property whether real, personal or mixed, or tangible or intangible, wheresoever located, now owned or hereafter acquired by Guarantor, including without limitation, all Accounts, Certificated Securities, Chattel Paper, Contract Rights, Deposit Accounts, Documents, Equipment, Financial Assets, Fixtures, General Intangibles, Goods, Instruments, Inventory, Investment Property, Security Entitlements, Uncertificated Securities, Commercial Tort Claims, Software, Letter of Credit Rights and all Proceeds thereof (as each such defined term is defined in the UCC) and to the extent not included in the foregoing, all property and assets of any kind or description owned by Guarantor, all of such assets and property (together with the "Collateral" of Borrower pursuant to Section 3.1 hereof) being collectively hereinafter the "Collateral."
Subsidiary Pledge. Upon the creation or acquisition of any Subsidiary that is not an Insignificant Subsidiary or if any Insignificant Subsidiary's net worth or total assets increases so that it is no longer an Insignificant Subsidiary, the Borrower shall cause such Subsidiary to execute and deliver to Agent a Guaranty, a Subsidiary Security Agreement and such other documentation as the Agent may request to cause such Subsidiary to evidence, perfect or otherwise implement the guaranty and security for the repayment of the Obligations contemplated by a
Subsidiary Pledge. Upon the creation or acquisition of any Subsidiary or if a Default occurs and the Agent requests with respect to AHG Partnership, the Borrower shall cause such Subsidiary to execute and deliver a Subsidiary Joinder Agreement and such other documentation as the Agent may request to cause such Subsidiary to evidence, perfect, or otherwise implement the guaranty and security for repayment of the Obligations contemplated by a Guaranty, the Subsidiary Security Agreement and, if applicable, a Subsidiary Pledge Agreement.
Subsidiary Pledge. 38 (c) Borrower Pledge of Subsidiary Stock . . . . . . . . . . . . . . . . . . . . . . . . 38 Section 9.11 ERISA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38