Collateral Security Arrangements Clause Samples
The Collateral Security Arrangements clause establishes the terms under which one party provides collateral to secure its obligations under an agreement. Typically, this clause outlines the types of acceptable collateral, the process for delivering and maintaining the collateral, and the rights of the secured party in the event of default. For example, it may specify that cash, securities, or other assets can be pledged and detail how their value is determined and monitored. The core function of this clause is to reduce credit risk by ensuring that the secured party has recourse to specific assets if the other party fails to meet its obligations.
Collateral Security Arrangements. (a) At all times the Borrower shall grant Acceptable Security Interests in all of its personal property.
(b) Each Mortgage executed pursuant to the terms of this Agreement shall be sufficient to create for the ratable benefit of the Secured Parties a legal, valid and enforceable security interest in the Mortgaged Property described therein and intended to be subject to the Liens created thereby and, when appropriate filings or registrations are made with the county clerk of each county where such Mortgaged Property is located or such other Person as may be required by local law, the Collateral Agent shall have a valid perfected Lien on all right, title and interest of the Borrower named as debtor or mortgagor or assignor thereunder in the applicable Mortgaged Property, prior and superior in right to any other Person, other than Permitted Priority Liens.
(c) The Servicing Agreement must at all times require the Servicer to instruct, and the Servicer must at all times have instructed, all Tenant Lessees for Wireless Assets to make their payments directly and solely to the Operating Account. If the Borrower and/or the Servicer shall receive any monies, checks, notes, drafts or any other payments relating to and/or proceeds of Tenant Leases of Wireless Assets or other Collateral which are not deposited in the Operating Account, then the Borrower shall cause such Person to hold such instrument or funds in trust for the Collateral Agent, and shall promptly remit the same or cause the same to be remitted, in kind, to the Operating Account. *Information marked with an asterisk herein has been omitted and filed separately with the Commission pursuant to a request for confidential treatment.
Collateral Security Arrangements. The Administrative Agent shall have received the following:
(a) each of the agreements, instruments or documents described in Item 5.1.4 of the Disclosure Schedule hereto under the caption “Closing Date Collateral Documents,” duly executed and delivered by the parties thereto, and
(b) except as otherwise described in Item 5.1.4 of the Disclosure Schedule hereto under the caption “Post Closing Date Collateral Perfection,” evidence that each of the actions described in Item 5.1.4 of the Disclosure Schedule hereto under the caption “Closing Date Collateral Perfection” shall have been duly taken. In addition, the Lenders and their counsel shall be satisfied that (i) the Liens granted to the Collateral Agent, for the benefit of the Secured Parties, in the collateral described in the documents referred to in clause (a) above are subject to no equal or prior Liens (other than Permitted Liens); and (ii) no Liens exist on any of such collateral described above other than the Liens created in favor of the Collateral Agent, for the benefit of the Secured Parties, pursuant to a Loan Document and Permitted Liens.
Collateral Security Arrangements. The Administrative Agent shall have received each of the agreements, instruments or documents described in Item 5.1.4(D) hereto under the caption “Restatement Effective Date Collateral Documents,” duly executed and delivered by the parties thereto.