Common use of Collateral In Possession of Third Parties Clause in Contracts

Collateral In Possession of Third Parties. To the extent that any Collateral is in the possession of any third party, and such Collateral has a fair market value in excess of $25,000 in the aggregate, Borrower shall promptly notify Collateral Agent of the existence thereof and, at Collateral Agent’s request, Borrower shall join with Collateral Agent in notifying such third party of Secured Party’s security interest and shall make commercially reasonable efforts to obtain an acknowledgement from such third party that it is holding the Collateral for the benefit of Secured Party.

Collateral In Possession of Third Parties. To the extent that any Collateral is in the possession of any a third party, and such Collateral has a fair market value in excess of $25,000 in each Grantor promptly upon reasonable request from the aggregate, Borrower shall promptly notify Collateral Agent of the existence thereof and, at Collateral Agent’s request, Borrower shall will join with the Collateral Agent in notifying such third party of Secured Party’s the Collateral Agent's security interest and shall will make commercially reasonable efforts to obtain an acknowledgement from such third party that it is holding the Collateral for the benefit of Secured Partythe Collateral Agent.