Commercially Reasonable Disposition Clause Samples
The "Commercially Reasonable Disposition" clause defines the standard by which a secured party must sell, lease, or otherwise dispose of collateral after a default. In practice, this means the party must act in a manner consistent with accepted commercial practices, such as advertising the sale appropriately or obtaining fair market value, rather than simply liquidating assets in a hasty or unfair manner. This clause ensures that the process of disposing of collateral is fair and protects both the debtor and creditor by minimizing disputes over whether the sale was conducted properly.
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Commercially Reasonable Disposition. The parties acknowledge that it would be impossible to realize a commercially reasonable price in the event of the disposition of the pledged stock by public sale and very difficult to do so by private sale, except on the terms and conditions set forth herein. Therefore, the parties acknowledge that a disposition of the Shares pursuant to the terms of this Agreement is a commercially reasonable disposition. The parties further acknowledge and agree that the determination of the Purchase Price under Section 7 is a commercially reasonable method of determining the Purchase Price and that they will be bound by such Purchase Price determination.
Commercially Reasonable Disposition. Without precluding any other methods of sale, the sale of the Pledged Collateral, or any part thereof, shall have been made in a commercially reasonable manner if conducted in conformity with reasonable commercial practices of banks or finance companies disposing of similar property, but in any event, Collateral Agent may sell or otherwise dispose of the Pledged Collateral without assuming any credit risk and without any obligation to advertise.
Commercially Reasonable Disposition. The parties acknowledge that it would be impossible to realize a commercially reasonable price in the event of the disposition of the pledged stock by public sale and very difficult to do so by private sale, except on the terms and conditions in Sections 4 and 5 hereto. Therefore, the parties acknowledge that a disposition of the Collateral under Sections 4 and 5 hereto is a commercially reasonable disposition, and agree that the determination of the Purchase Price under Section 5 is commercially reasonable and that they will be bound by the Purchase Price determination.
Commercially Reasonable Disposition. The parties acknowledge that it would be impossible to realize a commercially reasonable price on the disposition of the pledged Collateral by public sale and very difficult to do so by private sale, except on the terms and conditions in Articles IV and V of this Agreement. Therefore, the parties hereto acknowledge that a disposition of the Collateral under Articles IV and V is a commercially reasonable disposition, and agree that the determination of the Purchase Price under Article V is commercially reasonable and that they will be bound by such price.
Commercially Reasonable Disposition. Without precluding any other methods of sale, the sale of the Collateral contemplated by Section 6.1, or any part thereof, shall have been made in a commercially reasonable manner if conducted in conformity with reasonable commercial practices of banks or finance companies disposing of similar property, but in any event, the Secured Parties may sell or otherwise dispose of the Collateral without assuming any credit risk and without any obligation to advertise.