Collateral and Additional Collateral, Etc Sample Clauses
The 'Collateral and Additional Collateral, Etc' clause defines the requirements for a party to provide assets or property as security for obligations under an agreement, and outlines the circumstances under which additional collateral may be demanded. Typically, this clause specifies what types of collateral are acceptable, how their value is determined, and the process for delivering or substituting collateral if needed. Its core function is to protect the secured party by ensuring there is sufficient security to cover potential losses, thereby reducing credit risk and providing a mechanism to address changes in the value or adequacy of the original collateral.
Collateral and Additional Collateral, Etc. (i) Pursuant to the Loan Documents, the Loan Parties shall grant, or cause to be granted, to the Agent, for the benefit of the Lenders, a first priority security interest in and Lien on, subject only to Permitted Liens, (A) all Collateral, (B) all equity interests of the Loan Parties, and (C) all other assets of the Loan Parties or any Subsidiary of any Loan Party, whether owned on the Closing Date or subsequently acquired except those assets subject to capitalized leases or Purchase Money Security Interests and the Excluded Properties.
(ii) Without limiting the generality of clause (a) of this Section 8.1.14, with respect to any Property (other than Property located in Colorado or Illinois) acquired after the Closing Date by the Borrower, any other Loan Party or any Subsidiary of any Loan Party as to which the Agent, for the benefit of the Lenders, does not have a perfected Lien, promptly and, in any event, within five (5) Business Days of the acquisition thereof, the Borrower, such Loan Party or such Subsidiary, as applicable, shall, at its expense: (i) execute and deliver to the Agent such Security Documents or such amendments to such Security Documents as the Agent deems necessary or advisable to grant to the Agent, for the benefit of the Lenders, a first priority Lien in such Property, subject only to Permitted Liens, (ii) take all actions necessary or advisable to grant to the Agent, for the benefit of the Lenders, a perfected first priority Lien and security interest on such Property (subject only to Permitted Liens), including the filing of Mortgages and Uniform Commercial Code financing statements in such jurisdictions as may be required by the Security Documents or by Law or as may be requested by the Agent and (iii) deliver to the Agent such legal opinions relating to the matters described in clauses (i) and (ii) immediately above, which opinions shall be in form and substance, and from counsel, reasonably satisfactory to the Agent.
(iii) Without limiting the generality of clause (i) of this Section 8.1.14, with respect to any new Subsidiary created or acquired after the Closing Date by the Borrower, any other Loan Party or any Subsidiary of any Loan Party, concurrently with such creation or acquisition, the Borrower, such other Loan Party and/or such Subsidiary, as applicable, shall: (i) execute and deliver to the Agent such amendments to the Security Documents as the Agent deems necessary or advisable to grant to the Agent, for the benefit of ...
Collateral and Additional Collateral, Etc. Section 8.1.14 of the Credit Agreement is hereby amended as follows:
Collateral and Additional Collateral, Etc. Clause (iii) of Section 8.1.14 of the Credit Agreement is hereby amended by deleting the phrase “, concurrently with such acquisition or creation,” in the third and fourth lines thereof and adding the following sentence at he end of such clause (iii): “Notwithstanding anything to the contrary contained in this clause (iii) of Section 8.1.14, the Loan Parties shall not be required to execute and deliver the documents referred to above until the date that is five (5) Business Days after the date on which such new Subsidiary first acquires any Property or assets that would constitute Collateral and such Properties or assets have a value in excess of $500,000.”
Collateral and Additional Collateral, Etc. Section 8.1.14 of the Credit Agreement is hereby amended by adding after clause (iii) thereof the following new clause (iv):
Collateral and Additional Collateral, Etc. Section 8.1.14 (ii)(a) and Section 8.1.14 (iii)(iii)(B) of the Credit Agreement are hereby amended to delete the phrase “(other than Property located in Colorado or Illinois)”.