Common use of Use and Transfer of Pledged Assets Clause in Contracts

Use and Transfer of Pledged Assets. (i) Pursuant to the provisions of Article 356 of the Law, to the extent the Pledgee has not delivered a Default Notice (as defined in Clause Seventh below) to the Pledgor, the Pledgor shall be entitled to (x) use its Pledged Assets in the ordinary course of business and according to their nature; (y) transfer or otherwise dispose of its Pledged Assets in the ordinary course of business and to the extent not in violation of the Second Priority Indenture or the other Second Priority Documents and, upon any such transfer or disposition, the Security Interest over the portion of the Pledged Assets so transferred or disposed shall cease and be released as provided in the Second Priority Indenture and other Second Priority Documents; provided, however, that the proceeds or assets received by the Pledgor in consideration of any such transfer or disposition shall automatically become part of the Pledged Assets; and (z) collect and receive any and all payments, distributions or any other consideration arising from or relating to its Pledged Assets and use the proceeds from any transfer or disposition of its Pledged Assets in the ordinary course of business, in each case, only to the extent not in violation of the Second Priority Indenture or the other Second Priority Documents; further provided, that such payments, distributions and other consideration shall automatically become part of the Pledged Assets. The Pledgor shall maintain the Equipment and the Inventory in good operating and physical condition and make all necessary repairs and replacements thereto to maintain the value and operating efficiency of such Equipment and Inventory, ordinary wear and tear excepted. Upon delivery by the Pledgee of a Default Notice (as defined in Clause Seventh below) to the Pledgor, all rights of the Pledgor under this section (a) (i) shall automatically cease, and the Pledgee may follow the foreclosure procedure set forth in Clause Sixth below.

Use and Transfer of Pledged Assets. (i) Pursuant to the provisions of Article 356 of the Law, to the extent the Pledgee has not delivered a Default Notice (as defined in Clause Seventh below) to the Pledgor, the Pledgor shall be entitled to (x) use its Pledged Assets in the ordinary course of business and according to their nature; (y) transfer or otherwise dispose of its Pledged Assets in the ordinary course of business and to the extent not in violation of the Second First Priority Indenture or the other Second First Priority Documents and, upon any such transfer or disposition, the Security Interest over the portion of the Pledged Assets so transferred or disposed shall cease and be released as provided in the Second First Priority Indenture and other Second First Priority Documents; provided, however, that the proceeds or assets received by the Pledgor in consideration of any such transfer or disposition shall automatically become part of the Pledged Assets; and (z) collect and receive any and all payments, distributions or any other consideration arising from or relating to its Pledged Assets and use the proceeds from any transfer or disposition of its Pledged Assets in the ordinary course of business, in each case, only to the extent not in violation of the Second First Priority Indenture or the other Second First Priority Documents; further provided, that such payments, distributions and other consideration shall automatically become part of the Pledged Assets. The Pledgor shall maintain the Equipment and the Inventory in good operating and physical condition and make all necessary repairs and replacements thereto to maintain the value and operating efficiency of such Equipment and Inventory, ordinary wear and tear excepted. Upon delivery by the Pledgee of a Default Notice (as defined in Clause Seventh below) to the Pledgor, all rights of the Pledgor under this section (a) (i) shall automatically cease, and the Pledgee may follow the foreclosure procedure set forth in Clause Sixth below.