Addition; Replacements; Proceeds Clause Samples
The 'Addition; Replacements; Proceeds' clause governs how new assets are added to, existing assets are replaced in, or proceeds from the sale or disposition of assets are handled under an agreement. Typically, this clause specifies the process for including additional property, substituting assets, or directing the use of funds received from asset sales, such as requiring that proceeds be used to acquire similar assets or be applied to outstanding obligations. Its core function is to ensure that the value and composition of the relevant asset pool remain consistent and protected, thereby maintaining the security or integrity of the agreement for all parties involved.
Addition; Replacements; Proceeds. All additions, accessions, replacements, substitutions, proceeds and products of the property, tangible and intangible, described herein. AND, without limiting any of the other provisions of this Instrument, Borrower expressly grants to Lender, as secured party, a security interest in all of those portions of the Collateral that are or may be subject to the UCC provisions applicable to secured transactions; and TO HAVE AND TO HOLD the Collateral unto Trustee for the benefit of Lender. PROVIDED, HOWEVER, that nothing contained herein shall create an obligation on the part of Lender to make future advances or readvances to Borrower; and PROVIDED, FURTHER, that the total amount of the Secured Obligations and advances at any one time secured hereby shall in no event exceed $21,525,000, plus interest thereon and all charges and expenses of collection incurred by ▇▇▇▇▇▇, including court costs and attorneys' fees and expenses and advancements for taxes, insurance premiums, public assessments and repairs, if any; and FURTHER to secure the full, timely and proper payment and performance of the Secured Obligations, Borrower hereby covenants and agrees with and warrants to Trustee for the benefit of Lender as follows: