Collateral Held in Trust Clause Samples
The 'Collateral Held in Trust' clause establishes that any collateral provided under the agreement is to be held by a designated party, typically a trustee or agent, for the benefit of the secured party. In practice, this means that the collateral is not directly controlled by the lender or borrower, but is instead managed by a neutral third party who ensures it is safeguarded and only released according to the terms of the agreement. This arrangement helps protect the interests of both parties by ensuring the collateral is properly managed and reduces the risk of misuse or unauthorized access.
Collateral Held in Trust. Unless expressly provided to the contrary in any Credit Document, each Collateral Agent declares that it shall hold the Collateral in trust for the Beneficiaries on the terms contained in this Agreement.
Collateral Held in Trust. Each Credit Party shall, and shall cause its Affiliates, officers, employees, agents, directors or other Persons acting for or in concert with Borrower (each a "Related Person"), to (i) hold in trust for Administrative Agent, for the benefit of itself and the Secured Parties, all checks, cash and other items of payment received by such Credit Party or any such Related Person with respect to the Collateral and (ii) within three (3) Business Days after receipt by such Credit Party or any such Related Person of any checks, cash or other items of payment then constituting good funds (other than cash constituting Store Cash) with respect to the Collateral, deposit the same into a Depository Account or Concentration Account of such Credit Party. Each Credit Party and each Related Person acknowledges and agrees that all cash, checks or other items of payment constituting proceeds of Collateral are part of the Collateral. All proceeds of the sale or other disposition of any Collateral (other than cash constituting Store Cash), shall be deposited directly into a Depository Account or Concentration Account, as applicable.
Collateral Held in Trust. Except for any dividends or distributions permitted by the Credit Agreement, any Collateral received by Pledgor shall be received in trust for the benefit of Secured Party and the Lenders. All Collateral and any certificates or other written instruments or documents evidencing and/or representing Collateral that is received by Pledgor, together with such instruments of transfer as Secured Party may request, shall immediately be delivered to or deposited with Secured Party and held by Secured Party as Collateral under the terms of this Agreement. If any Collateral received by Pledgor shall be shares of stock or other certificated Equity Interests, such shares of stock or other certificated Equity Interests shall be duly endorsed in blank or accompanied by proper instruments of transfer and assignment duly executed in blank, all in form and substance satisfactory to Secured Party. Secured Party shall be deemed to have possession of any Collateral in transit to Secured Party or its agent. Notwithstanding the foregoing, until the occurrence of an Event of Default (as hereinafter defined), Pledgor shall be entitled to all cash dividends and all interest paid on the Collateral free of the security interest created under this Agreement.
Collateral Held in Trust. All Collateral not required to be delivered to and remain in the possession of Lender, will be held by Borrower in trust for Lender.
Collateral Held in Trust. (a) Deposit Accounts Subject to Collateral Agent’s Control. Collateral Agent agrees that its security interest and right of setoff in and to the Deposit Accounts is held for the benefit of all the Secured Creditors and itself as Collateral Agent, and that Collateral Agent will comply with this Agreement and the Security Agreement in distributing monies received from such Deposit Accounts.
(b) Collateral Held in Trust by Secured Creditors. Each Secured Creditor hereby acknowledges that if any Secured Creditor (individually or through its own custodian) shall hold or control, at any time, any assets comprising Collateral, such possession or control is also held for the benefit of Collateral Agent for the benefit of the Secured Creditors. The foregoing sentence shall not be construed to impose any duty on a Secured Creditor (or any third party acting on its behalf) with respect to such Collateral if it is not perfected by possession or control.