Control by Pledgor Clause Samples
The "Control by Pledgor" clause establishes that the pledgor, or the party offering collateral, retains authority over the pledged assets during the term of the agreement. In practice, this means the pledgor can manage, use, or direct the assets unless and until a default occurs, at which point control may shift to the secured party. This clause is essential for clarifying the rights of the pledgor, ensuring they can continue to operate their business or manage their property while still providing security to the lender.
Control by Pledgor. Unless and until the Custodian receives written notice from Secured Party pursuant to Section 2.3 below instructing the Custodian that Secured Party is exercising its right to exclusive control over the Collateral Account, which notice is substantially in the form attached hereto as Exhibit A (a “Notice of Exclusive Control”) the Custodian shall take all actions with respect to the Collateral in the Collateral Account upon the joint instructions of Secured Party and Pledgor.