Collateral Effective Date Clause Samples
The Collateral Effective Date clause defines the specific date on which collateral arrangements between parties become legally binding and enforceable. In practice, this means that any assets or securities designated as collateral must be delivered, perfected, or otherwise made available by this date, and the rights and obligations related to the collateral commence from this point forward. This clause ensures clarity and certainty regarding when collateral protections take effect, thereby reducing disputes and managing risk for both parties.
Collateral Effective Date. Upon the occurrence of the Collateral Effective Date and during the ensuing Collateral Period, the Pledge Agreements shall be in full force and effect and the Collateral Agent, on behalf of the Lenders, shall have a Lien on the Collateral described in the Pledge Agreements and there shall be added to Section 1 a new representation and warranty in the form set forth on Schedule V attached hereto. Within ten Business Days following the Collateral Effective Date, the Company shall deliver to the Collateral Agent, in form and substance reasonably satisfactory to the Collateral Agent:
(i) all stock certificates evidencing the stock pledged to the Collateral Agent pursuant to the Pledge Agreements, together with duly executed in blank undated stock powers attached thereto;
(ii) duly executed UCC financing statements for each appropriate jurisdiction as is necessary, in the Collateral Agent's sole discretion, to perfect the Lenders' security interest in the Collateral; and
(iii) an opinion of counsel addressed to the Collateral Agent, on behalf of the Lenders, covering such issues as reasonably requested by the Collateral Agent, including the attachment and perfection of the liens.
Collateral Effective Date. Section 1.1 of the Credit Agreement is amended to delete the definition of "Collateral Effective Date" set forth therein in its entirety.
Collateral Effective Date. Upon the occurrence of a Collateral Effective Date and during the ensuing Collateral Period, the Pledge Agreements shall be in full force and effect and the Collateral Agent, on behalf of the Lenders, shall have a Lien on the Collateral described in the Pledge Agreements and there shall be added to Section 6 a new representation and warranty in the form set forth on Schedule 7.13 hereof. Within ten Business Days following the Collateral Effective Date, the Borrower shall deliver to the Collateral Agent, in form and substance reasonably satisfactory to the Collateral Agent:
(a) all stock certificates evidencing the stock pledged to the Collateral Agent pursuant to the Pledge Agreements, together with duly executed in blank undated stock powers attached thereto;
(b) duly executed UCC financing statements for each appropriate jurisdiction as is necessary, in the Collateral Agent's sole discretion, to perfect the Lenders' security interest in the Collateral; and
(c) an opinion of counsel addressed to the Collateral Agent, on behalf of the Lenders, covering such issues as reasonably requested by the Collateral Agent, including the attachment and perfection of the liens.
Collateral Effective Date