Common use of Back-Up Security Interest Clause in Contracts

Back-Up Security Interest. The Parties intend that the transactions contemplated by this Agreement constitute purchase and sale transactions. If, notwithstanding the intent of the Parties, such transactions are deemed to constitute loans, then PRC shall be deemed to have pledged and granted to Xxxx, a first priority lien and security interest in all quantities of Product intended to constitute Xxxx Inventory hereunder and all proceeds thereof as security for the performance of all of PRC’s obligations and liabilities hereunder, and any UCC filings by Xxxx with respect to such quantities of Product shall serve to perfect such pledge and security interest. However, the filing of any UCC financing statements made pursuant to this Agreement shall in no way be construed as being contrary to the intent of the Parties that the transactions contemplated by this Agreement be treated as purchase and sale transactions.

Back-Up Security Interest. The Parties intend that the transactions contemplated by this Agreement constitute purchase and sale transactions. If, notwithstanding the intent of the Parties, such transactions are deemed to constitute loans, then PRC DCR shall be deemed to have pledged and granted to Xxxx, a first priority lien and security interest in all quantities of Product intended to constitute Xxxx Inventory hereunder and all proceeds thereof as security for the performance of all of PRCDCR’s obligations and liabilities hereunder, and any UCC filings by Xxxx with respect to such quantities of Product shall serve to perfect such pledge and security interest. However, the filing of any UCC financing statements made pursuant to this Agreement shall in no way be construed as being contrary to the intent of the Parties that the transactions contemplated by this Agreement be treated as purchase and sale transactions.