Acknowledgment of Collateral Assignment Clause Samples
The Acknowledgment of Collateral Assignment clause serves to formally recognize that a party’s rights or interests under an agreement have been assigned as collateral to a third party, typically a lender. In practice, this clause requires the non-assigning party to acknowledge the assignment and may obligate them to provide notice or consent before any changes to the agreement are made that could affect the collateral. Its core function is to ensure that the assignee’s security interest is recognized and protected, thereby facilitating secured lending and reducing the risk of disputes over the validity or priority of the collateral assignment.
Acknowledgment of Collateral Assignment. In the event that Provider identifies a secured Financing Party in Schedule 5 of the Special Conditions, or in a subsequent notice to Purchaser, then Purchaser hereby:
(a) acknowledges the collateral assignment by Provider to the Financing Party, of Provider’s right, title and interest in, to and under the Agreement, as consented to under Section 13.1 of the Agreement.
(b) acknowledges that the Financing Party as such collateral assignee shall be entitled to exercise any and all rights of lenders generally with respect to the Provider’s interests in this Agreement.
(c) acknowledges that it has been advised that Provider has granted a first priority perfected security interest in the System to the Financing Party and that the Financing Party has relied upon the characterization of the System as personal property, as agreed in this Agreement in accepting such security interest as collateral for its financing of the System. Any Financing Party shall be an intended third- party beneficiary of this Section 13.2.
Acknowledgment of Collateral Assignment. In the event that ▇▇▇▇▇▇ identifies a secured ▇▇▇▇▇▇ as an assignee, then Buyer hereby:
(a) acknowledges and agrees to the collateral assignment by Seller to the Lender, of Seller’s right, title and interest in, to and under the Agreement, as consented to under Section 12.1 of the Agreement;
(b) acknowledges and agrees that the Lender as such collateral assignee shall be entitled to exercise any and all rights of lenders generally with respect to Seller’s interests in this Agreement;
(c) acknowledges and agrees that it has been advised that ▇▇▇▇▇▇ has granted a first priority perfected security interest in the System to the Lender and that the Lender has relied upon the characterization of the System as personal property, as agreed in this Agreement in accepting such security interest as collateral for its financing of the System; and
(d) agrees to execute a consent agreement or estoppel certificate in a form reasonably satisfactory to Seller. Any Lender shall be an intended third-party beneficiary of this Section 12.2.
Acknowledgment of Collateral Assignment. In the event that Provider identifies a secured Financing Party in Schedule 5 hereto, or in a subsequent notice to Purchaser, then Purchaser hereby:
(a) acknowledges the collateral assignment by Provider to the Financing Party, of Provider’s right, title and interest in, to and under the Agreement, as consented to under Section 13.1 of the Agreement.
(b) acknowledges that the Financing Party as such collateral assignee shall be entitled to exercise any and all rights of lenders generally with respect to the Provider’s interests in this Agreement.
(c) acknowledges that it has been advised that Provider has granted a first priority perfected security interest in the System to the Financing Party and that the Financing Party has relied upon the characterization of the System as personal property, as agreed in this Agreement, in accepting such security interest as collateral for its financing of the System. Any Financing Party shall be an intended third- party beneficiary of this Section 13.2. Further, Purchaser shall, upon the request of Provider or any Financing Party, provide a signed acknowledgement and confirmation for the benefit of the Financing Party, substantially in the form as Provider or the Financing Party may reasonably request; which acknowledgment and confirmation shall certify, to the extent true and correct, among other things that (1) this Agreement is in full force and effect, (2) no modifica tions have been made, (3) no disputes or defaults exist, (4) no events have occurred that would, with the giving of notice or the passage of time, constitute a default under this Agreement, (5) all amounts then due and owing have been paid, and (6) the Commercial Operation Date has occurred.
Acknowledgment of Collateral Assignment. If Operator identifies a secured Financing Party and Subscriber consents to the collateral assignment under Section 12.1, then Subscriber acknowledges and agrees:
(a) to the collateral assignment by Operator to the Financing Party, of Operator’s right, title and interest in, to and under the Agreement, as consented to under Section 12.1 of the Agreement.
(b) that the Financing Party as such collateral assignee is entitled to exercise any and all rights of lenders generally with respect to Operator’s interests in this Agreement. Any Financing Party is an intended third-party beneficiary of this Section 12.2.
Acknowledgment of Collateral Assignment. In the event that Lodestar identifies a secured Financing Party on Schedule 5 of the Agreement, or in a subsequent notice to Town of Bedford, then Town of Bedford hereby:
(a) acknowledges the collateral assignment by Lodestar to the Financing Party, of Lodestar’s right, title and interest in, to and under the Agreement, as consented to under Section 11.1 of the Agreement;
(b) acknowledges that the Financing Party as such collateral assignee shall be entitled to exercise any and all rights of lenders generally with respect to Lodestar’s interests in this Agree- ment but not in derogation of any right of Town of Bedford under this Agreement; and
(c) acknowledges that it has been advised that Lodestar has granted a first priority per- fected security interest in the System to the Financing Party and that the Financing Party has relied upon the characterization of the System as personal property, as agreed in this Agreement in ac- cepting such security interest as collateral for its financing. Any Financing Party shall be an intended third-party beneficiary of this Section 11.2.
Acknowledgment of Collateral Assignment a) Customer acknowledges and consents to the collateral assignment by Provider to the Eligible Renewable Generating Facility Lessor, of Provider’s right, title and interest in, to and under the PPA.
b) Customer acknowledges that (i) it has been advised that (1) Provider intends to sell the Eligible Renewable Generating Facility to Eligible Renewable Generating Facility Lessor, (2) upon such sale, Eligible Renewable Generating Facility Lessor will be the owner of the Eligible Renewable Generating Facility, and (3) Eligible Renewable Generating Facility Lessor intends to lease the Eligible Renewable Generating Facility to the Provider pursuant to a lease (the “Eligible Renewable Generating Facility Lease”), upon which, the Provider will grant a first priority security interest in the Eligible Renewable Generating Facility to Eligible Renewable Generating Facility Lessor and (ii) Eligible Renewable Generating Facility Lessor has relied upon the characterization of the Eligible Renewable Generating Facility as personal property, as agreed in the PPA in accepting such security interest as collateral for its financing of the Eligible Renewable Generating Facility.
c) Customer acknowledges that, during the continuance of an event of default by Provider under the Eligible Renewable Generating Facility Lease (as notified to Customer by Eligible Renewable Generating Facility Lessor) or upon the end of the Lease Term (as defined in the Eligible Renewable Generating Facility Lease), Eligible Renewable Generating Facility Lessor has the right to foreclose on and succeed to all of Provider’s right, title and interest under the PPA, including the right to continue to perform in place of the Provider, the right to require Customer to continue to perform under such agreements, and the right to rely upon all representations, warranties, indemnities and agreements made by Customer under or pursuant to the Agreements.
d) Until further written notice from the Eligible Renewable Generating Facility Lessor, Customer agrees to make all payments due Provider under the PPA to Eligible Renewable Generating Facility Lessor.
Acknowledgment of Collateral Assignment. In the event that Contractor identifies a secured Financing Party in a notice to the DOC, then the DOC hereby: (i) acknowledges the collateral assignment by Contractor to the Financing Party, of Contractor's right, title and interest in, to and under the Contract; (ii) acknowledges that. the Financing Party as such collateral assignee shall be entitled to exercise any and all rights of lenders generally with respect to the Contractor's interests in the Contract within the timeframes specified herein with respect to Contractor; (iii) acknowledges that it has been advised that Contractor has granted a first priority perfected security interest in the Solar PY System to the Financing Party and that the Financing Party has relied upon the characterization of the Solar PY System as personal property, as agreed to in the Contract in accepting such security interest as collateral for its financing of the Solar PY System. Any Financing Party shall be an intended third-party beneficiary of this Paragraph.