Collateral Control Clause Samples
The Collateral Control clause establishes the rights and responsibilities regarding the management and oversight of collateral provided in a transaction. It typically outlines who has authority over the collateral, such as the ability to access, monitor, or take possession of it, and may specify procedures for maintaining or substituting collateral as needed. This clause ensures that the secured party can effectively protect its interests in the collateral, reducing the risk of loss or misuse and providing clear guidelines for both parties.
Collateral Control. Subject to its rights under Sections 4.4 and 7.4, remove any items of Collateral from Borrower’s facility located at the address set forth on the cover page hereof or as set forth on the Disclosure Schedule.
Collateral Control. Borrower shall not (i) terminate, waive or release any material right with respect to any Collateral, or (ii) remove any items of Collateral from Borrower’s facility located at the address specified in Section 9.07, the locations specified on Schedule 2, or such other address agreed to in writing by Lender.
Collateral Control. Subject to its rights under Section 4, (i) terminate, waive or release any material right with respect to any Collateral, (ii) except upon thirty days’ prior written notice to Lenders, remove any items of Collateral from Borrower’s facility located at the address set forth on the cover page hereof or such other address agreed to in writing by Lenders, or (iii) affix or attach or permit to be affixed or attached to any item of Collateral any other item of property owned by Borrower or any other lender, lessor or financing party which is not readily identifiable or separable without any damage to such item of Collateral, without each Lender’s prior written consent.
Collateral Control. Subject to Borrower’s rights under Sections 4.4 and 7.4, remove any items of Collateral (other than (i) clinical trial materials, (ii) laptops and similar equipment maintained by Borrower’s employees, (iii) research materials maintained at contract research and storage facilities, and (iv) other Collateral with an aggregate value of not more than $100,000) from Borrower’s facility located at the address set forth on the cover page hereof or as set forth on the Disclosure Schedule, without thirty (30) days’ prior written notice to Collateral Agent.
Collateral Control. Subject to its rights under Sections 4.4 and 7.4, remove any items of Collateral with an aggregate book value in excess of Three Hundred Thousand Dollars ($300,000) at any time from Borrower’s facility located at the address set forth on the cover page of this Agreement or as set forth on the Disclosure Schedule, without prior written notice to the Collateral Agent. The foregoing shall not apply, however, to any: (i) moveable items of personal property such as laptop computers; (ii) inventory in the possession of Borrower’s customers in the ordinary course of business; (iii) Collateral in transit in the ordinary course of business; or (iv) any Collateral that is transferred in accordance with Section 7.4 of this Agreement.
Collateral Control. Subject to its rights under Sections 4.4 and 7.4, remove any items of Collateral from Borrower’s facility located at the address set forth on the cover page hereof or as set forth on the Disclosure Schedule, without prior written notice to Lenders; provided however, that the foregoing shall not apply to any (i) moveable items of personal property such as laptop computers, (ii) inventory in the possession of Borrower’s customers in the ordinary course of business, (iii) Collateral in transit in the ordinary course of business, (iv) any Collateral maintained with Borrower’s third party logistics providers in the ordinary course of business and (v) any Collateral that is transferred in accordance with Section 7.4 of this Agreement. If Borrower intends to add any new offices or business locations, including warehouses, containing in excess of One Hundred Thousand Dollars ($100,000) of Borrower’s assets or property, then Borrower will use commercially reasonable efforts to cause the landlord of any such new offices or business locations, including warehouses, to execute and deliver a landlord consent in form and substance satisfactory to Collateral Agent and Lenders. If Borrower intends to deliver any portion of the Collateral valued, individually or in the aggregate, in excess of Five Hundred Thousand Dollars ($500,000) to a bailee, and Collateral Agent and such bailee are not already parties to a bailee agreement governing both the Collateral and the location to which Borrower intends to deliver the Collateral, then Borrower will use commercially reasonable efforts to cause such bailee to execute and deliver a bailee agreement in form and substance satisfactory to Collateral Agent and Lenders.
Collateral Control. Except for Collateral that is of a type that is moved from location to location in the ordinary course of business, Borrower shall keep all items of Collateral at (i) Borrower’s facility located at the address specified in Section 12.06, (ii) the locations specified in the Perfection and Disclosure Certificate, (iii) any supplier’s facility located outside the United States or (iv) such other places agreed to in writing by Agent subject to any conditions reasonably imposed by Agent. Borrower shall furnish to Agent from time to time such statements and schedules further identifying and describing the Collateral and such other reports in connection with the Collateral as Agent may reasonably request, all in reasonable detail.
Collateral Control. The Borrower agrees that it will not transfer, or cause to have been transferred, title to or possession of any interest in the Collateral, or any part thereof, other than in the normal course of business, to any person or entity, without the prior express written consent of the Secured Party. The Debtor shall provide the Secured Party promptly with any information concerning the Collateral which shall be reasonably required by the Secured Party. So long as no event of default exists under this Agreement or under any of the Transaction Documents as that term is defined in the Loan Agreement, the Debtor shall be entitled to receive and collect, comprise and settle all proceeds of its Collateral. Upon a default under this Agreement or the Transaction Documents, the Debtor’s right to collect said proceeds shall be terminated and the Debtor shall hold all of said proceeds in trust for the account of the Secured Party in a separate lock box or specifically designated account, and shall deliver the same of the Secured Party in the identical form received.
Collateral Control. No Borrower shall (i) terminate, waive or release any right with respect to any Collateral that would reasonably be expected to cause a Material Adverse Effect, or (ii) remove any items of Collateral from a Borrower’s facility located at the address specified in Section 9.07, the locations specified on Schedule 2, or such other address with respect to which Borrower gives Agent 30 days prior written notice, in each case except in the ordinary course of business.
Collateral Control. Lender shall have the right at any time to obtain and use the services of a collateral control firm. Borrower shall bear the expenses of such services.