Collateral Agent’s rights upon default Sample Clauses
The 'Collateral Agent’s rights upon default' clause defines the powers and actions the collateral agent may take if a borrower defaults on their obligations. Typically, this clause allows the agent to seize, manage, or sell the collateral securing the loan, and to apply the proceeds to satisfy the outstanding debt. It may also grant the agent authority to enforce security interests or take legal action on behalf of the lenders. The core function of this clause is to protect lenders by ensuring there is a clear, enforceable process for recovering value from collateral in the event of default, thereby reducing the risk of loss.
Collateral Agent’s rights upon default. (a) The Pledgor irrevocably constitutes and appoints the Collateral Agent, with full power of substitution, as the Pledgor’s true and lawful attorney-in-fact, in the Pledgor’s name or in the Collateral Agent’s name or otherwise, and at the Pledgor’s expense, to take any of the actions authorized by this Agreement or permitted under applicable law upon the occurrence and during the continuation of an Event of Default, without notice to or the consent of the Pledgor. This power of attorney is a power coupled with an interest and cannot be revoked. The Pledgor ratifies and confirms all actions taken by the Collateral Agent or its agents under this power of attorney.
(b) The Pledgor agrees that 10 days notice shall constitute reasonable notice in connection with any sale, transfer or other disposition of Pledged Collateral.
(c) The Collateral Agent may comply with any applicable state or federal law requirements in connection with a disposition of Pledged Collateral and compliance will not be considered adversely to affect the commercial reasonableness of any sale of Pledged Collateral.
(d) The grant to the Collateral Agent under this Agreement of any right, power or remedy does not impose upon the Collateral Agent any duty to exercise that right, power or remedy. The Collateral Agent will have no obligation to take any steps to preserve any claim or other right against any person or with respect to any Pledged Collateral.
(e) The Pledgor bears the risk of loss, damage, diminution in value, or destruction of the Pledged Collateral.
(f) The Collateral Agent will have no responsibility for any act or omission of any courier, bailee, broker, bank, investment bank or any other person chosen by it with reasonable care.
(g) The Collateral Agent makes no express or implied representations or warranties with respect to any Pledged Collateral or other property released to the Pledgor or its successors and assigns.
(h) The Pledgor agrees that the Collateral Agent will have met its duty of care under applicable law if it holds, maintains and disposes of Pledged Collateral in the same manner that it holds, maintains and disposes of property for its own account.
(i) Except as set forth in this Clause or as required under applicable law, the Collateral Agent will have no duties or obligations under this Agreement or otherwise with respect to the Pledged Collateral.
(j) The sale, transfer or other disposition under this Agreement of any right, title, or interest of the Pledg...
Collateral Agent’s rights upon default. Upon the occurrence and during the continuation of an Event of Default, the Collateral Agent (acting at the direction of the Required Holders) may, but shall not be obligated to, in its sole discretion, take any or all of the following actions, in each case at the Pledgor’s expense and without prior notice to the Pledgor except as required below or under applicable law:
(a) give notice of the Event of Default to any Person, collect distributions and other amounts constituting or payable in respect of the Pledged Collateral, and enforce all rights of the Pledgor in the Pledged Collateral;
(b) take possession of any or all of the Pledged Collateral, including through agents, wherever it may be found, and hold and manage the same;
(c) foreclose its Lien upon any or all of the Pledged Collateral;
(d) become, or cause its nominee or a transferee to become, a substitute or successor member of either Pledged Subsidiary;
(e) sell, lease, assign and deliver or otherwise dispose of any or all of the Pledged Collateral at public or private sale, with or without having any or all of the Pledged Collateral at the place of sale, upon terms, in such manner, at such time or times, and at such place or places as the Collateral Agent (acting at the direction of the Required Holders) may determine; and
(f) exercise any or all other rights or remedies available to the Collateral Agent (acting at the direction of the Required Holders) under applicable law, the Note Agreement and the other Financing Documents, or any other agreement between the parties. The Collateral Agent may, to the fullest extent permitted by law, exercise the foregoing rights and remedies in such order, at such times and in such manner as the Collateral Agent (acting at the direction of the Required Holders) may, in its sole and exclusive judgment, determine from time to time.
Collateral Agent’s rights upon default. Upon the occurrence and during the continuation of an Event of Default, the Collateral Agent may, but shall not be obligated to, in its sole discretion, take any or all of the following actions, in each case at the Issuer’s expense and without prior notice to the Issuer except as specifically set forth below and except as required under applicable law:
Collateral Agent’s rights upon default. After an acceleration of the unpaid principal and accrued interest pursuant to the terms of the Notes, the Collateral Agent, on behalf and for the benefit of the Secured Parties, may immediately and without notice pursue any remedy available at law or in equity to collect, enforce or satisfy any Obligations, including any or all of the following, which rights and remedies are cumulative, may be exercised from time to time, and are in addition to any rights and remedies available to the Secured Parties under the Notes.