Collateral Security and Intercreditor Agreements Sample Clauses
The 'Collateral, Security and Intercreditor Agreements' clause defines the terms under which assets are pledged as collateral to secure obligations, outlines the rights and responsibilities of parties holding security interests, and governs the relationships among multiple creditors. In practice, this clause specifies what assets are subject to security interests, the procedures for perfecting and enforcing those interests, and how priority is determined among different lenders or creditors, often referencing separate intercreditor agreements. Its core function is to protect lenders by ensuring they have enforceable claims to specific assets in the event of default, while also clarifying the order of repayment and minimizing disputes among creditors.
Collateral Security and Intercreditor Agreements. Agent, on behalf of the Lenders, has entered into the Intercreditor Agreement. Lenders have reviewed and hereby consent to and agree to be bound by the Intercreditor Agreement To the extent that the following matters are not governed by the Intercreditor Agreement, Agent and Lenders agree as follows:
(a) Agent will hold, administer and manage any Collateral pledged from time to time hereunder either in its own name or as Agent on behalf of the Lenders, but each Lender shall hold a direct, undivided pro-rata beneficial interest therein, on the basis of its Pro Rata Share, by reason of and as evidenced by this Agreement.
(b) Lenders hereby agree that the proceeds of any realization on the Collateral by Agent, and all Post-Default Payments, shall be applied as follows: first, to the payment of reasonable expenses of Agent, and to the expenses of sale or other realization upon such Collateral, including reasonable attorney's fees and expenses of every kind, including without limitation reasonable allocated costs of staff counsel), (ii) second, equally and ratably to all amounts of interest, expenses and fees with respect to the Loan, (iii) third, equally and ratably to all amounts of principal of the Loan, (iv) fourth, equally and ratably to all other amount representing Senior Obligations, and (vii) fifth, the balance, if any returned to the Borrower or such other Persons as are entitled thereto.
(c) No Lender shall have any individual right to exercise remedies with respect to the Collateral. If at any time during the continuance of an Event of Default any Lender acquires custody, control or possession of any Collateral or any proceeds thereof other than pursuant to the terms of this Agreement, such Lender shall promptly cause such Collateral or the proceeds thereof to be delivered or put in the custody, possession or control of Agent for disposition and distribution in accordance with this Agreement. Until such time as such Lender shall have complied with the foregoing, such Lender shall be deemed to hold such Collateral and the proceeds thereof in trust for the parties entitled thereto hereunder.
(d) The Lenders agree that all Post-Default Payment received by any Lender from any of the Companies or from any other source shall be paid over to Agent for distribution in accordance with 8.17(b) above.
Collateral Security and Intercreditor Agreements