Transfer for Security Clause Samples
The "Transfer for Security" clause establishes that certain assets or rights are being transferred from one party to another specifically as collateral to secure an obligation, such as a loan or other financial commitment. In practice, this means the transfer does not grant full ownership to the recipient but rather gives them a security interest, which may allow them to take possession or sell the asset if the original party defaults. This clause is essential for protecting the interests of the party providing credit or assuming risk, ensuring they have a legal claim to specific assets if the underlying obligation is not fulfilled.
Transfer for Security. The Sole Member may not pledge, --------------------- mortgage or otherwise hypothecate all or any part of its right, title and interest in cash distributions to be received from the Company, except as provided by the Securitization Documents.
Transfer for Security. Except (i) as otherwise permitted pursuant to Section 2.1 hereof, or (ii) as permitted by or in compliance with the provisions of the agreements referred to in Section 2.5, no Member may pledge, mortgage or otherwise hypothecate all or any part of its right, title and interest in distributions to be received from the Company.