Tl Priority Collateral Sample Clauses

The TL Priority Collateral clause defines the specific assets or collateral that are pledged to secure a Term Loan (TL) and establishes their priority over other claims. In practice, this clause outlines which assets are included as collateral for the benefit of TL lenders and clarifies that these assets will be used to satisfy TL obligations before other creditors in the event of default or liquidation. By clearly designating the collateral and its priority, the clause ensures that TL lenders have a superior claim to certain assets, thereby reducing their risk and making the loan more attractive.