Term Priority Collateral Clause Samples
The Term Priority Collateral clause establishes the order in which collateral is applied to satisfy obligations under an agreement. It specifies which assets or forms of collateral take precedence if multiple types are pledged, ensuring that parties know which collateral will be used first in the event of default or enforcement. This clause is essential for clarifying the hierarchy of claims, reducing disputes, and providing certainty to both parties about the treatment of collateral.
Term Priority Collateral. The Administrative Agent shall be satisfied with the valid perfected Second Priority security interest in favor of Collateral Agent, for the benefit of Secured Parties, in the Term Priority Collateral of each Credit Party.
Term Priority Collateral. If a Loan Party shall at any time or from time to time:
(i) make a Disposition of any Term Priority Collateral;
(ii) suffer an Event of Loss with respect to Term Priority Collateral; or
(iii) after the occurrence and during the continuance of a Specified Event, receive any Rent Payment or License Payment, then
(A) the Borrower shall promptly notify Agent of any such Disposition or Event of Loss in excess of $1,000,000 (including the amount of the estimated Net Proceeds to be received by a Loan Party in respect of such Disposition or Event of Loss, including any insurance proceeds) and
(B) promptly upon receipt by a Loan Party of any Net Proceeds (other than, so long as no Specified Event has occurred and is continuing, (i) Net Proceeds of up to $1,000,000.00 in the aggregate in any Fiscal Year, (ii) Net Proceeds from sales of vehicles owned by any Loan Party, or (iii) Net Proceeds from the Target Sale), the Loan Parties shall deliver, or cause to be delivered, such excess Net Proceeds, Rent Payment or License Payment, to Agent for distribution to the Lenders in accordance with their Loan Percentages as a prepayment of the Loans; provided that if (i) no Default or Event of Default has occurred and is continuing, (ii) the Borrower has given Agent prior written notice of it or its Subsidiary’s intention to apply the Net Proceeds from such Event of Loss to the costs of repair or replacement of the properties or assets that are the subject of such Event of Loss, (iii) once the aggregate Net Proceeds from all Dispositions and Events of Loss in the current Fiscal Year are greater than or equal to $1,000,000, the Borrower deposits or causes its Subsidiary to deposit the Net Proceeds therefrom into the Term Loan Priority Account, and (iv) the Borrower or its Subsidiary, as applicable, completes such repair or replacement, within the Reinvestment Threshold Time after the initial receipt of such Net Proceeds, then the Loan Party whose assets were the subject of such Event of Loss shall have the option to apply up to the Reinvestment Threshold Amount in respect of any Event of Loss to the costs of repair or replacement of the assets that are the subject of such Event of Loss. Any portion of the Net Proceeds of such Event of Loss in excess of the Reinvestment Threshold Amount or that has not been used by the applicable Loan Party within the Reinvestment Threshold Time after receipt of the Net Proceeds to repair or replace the relevant assets shall be applied as a prepa...
Term Priority Collateral. In the event that amounts are received in respect of Equity Interests of or intercompany loans issued to any Credit Party in an Insolvency Proceeding, such amounts shall be deemed to be proceeds received from a sale or disposition of ABL Priority Collateral and Term Priority Collateral and shall be, subject to the last sentence of Section 6.4, allocated as proceeds of ABL Priority Collateral and Term Priority Collateral in proportion to the ABL Priority Collateral and Term Priority Collateral owned at such time by the issuer of such Equity Interests.
Term Priority Collateral. All fixed assets of all Borrowers and the related intellectual property of all Borrowers as described in Section 4.19.