Pledge, Mortgage or Charge Sample Clauses
The 'Pledge, Mortgage or Charge' clause defines the conditions under which a party may use its assets as security for an obligation, such as a loan or other financial commitment. In practice, this clause outlines whether and how assets like property, equipment, or receivables can be pledged, mortgaged, or otherwise encumbered to secure repayment, and may set limits or require prior consent before such actions are taken. Its core function is to protect the interests of the parties by regulating the creation of security interests, thereby managing risk and preventing unauthorized encumbrances that could affect the value or availability of assets.
Pledge, Mortgage or Charge as Collateral for a Loan
Pledge, Mortgage or Charge as Collateral for a Loan. You may pledge, mortgage or charge your escrow securities to a financial institution as collateral for a loan, provided that no escrow securities or any share certificates or other evidence of escrow securities will be transferred or delivered by the Escrow Agent to the financial institution for this purpose. The loan agreement must provide that the escrow securities will remain in escrow if the lender realizes on the escrow securities to satisfy the loan.
Pledge, Mortgage or Charge. AS COLLATERAL FOR A LOAN You may pledge, mortgage or charge your escrow securities to a financial institution as collateral for a loan, provided that no escrow securities or any share certificates or other evidence of escrow securities will be transferred or delivered by the Escrow Agent to the financial institution for this purpose. The loan agreement must provide that the escrow securities will remain in escrow if the lender realizes on the escrow securities to satisfy the loan.
Pledge, Mortgage or Charge. AS COLLATERAL FOR A LOAN Securityholders may pledge, mortgage or charge their Escrow Securities to a financial institution as collateral for a loan, provided that no Escrow Securities or any share certificates or other evidence of Escrow Securities will be transferred or delivered by the Escrow Agent to the financial institution for this purpose. The loan agreement must provide that the Escrow Securities will remain in escrow if the lender realizes on the Escrow Securities to satisfy the loan.