Covenant Against Pledging Clause Samples
A Covenant Against Pledging is a contractual provision that prohibits a party, typically a borrower, from using certain assets as collateral for other debts or obligations. In practice, this clause restricts the borrower from granting security interests, liens, or pledges over specified assets without the lender’s prior consent. By preventing the borrower from encumbering assets that serve as security for the current agreement, this clause protects the lender’s interests and ensures that the value of their collateral is not diminished by competing claims.
Covenant Against Pledging. Successful Respondent agrees that, without the prior written consent of DIR, it shall not assign, transfer, pledge, hypothecate, or otherwise encumber its rights to receive payments from DIR under this Agreement for any reason whatsoever. To the extent DIR permits Successful Respondent to assign, transfer, pledge, hypothecate, or otherwise encumber its rights to receive payments from DIR under this Agreement, Successful Respondent shall continue to be DIR's sole point of contact with respect to this Agreement, including with respect to payment. The person or Entity to which such rights are assigned, transferred, pledged, hypothecated, or otherwise encumbered shall not be considered a third party beneficiary under this Agreement and shall not have any rights or causes of action against DIR.
Covenant Against Pledging. Contractor agrees that, without the prior written consent of State, it will not assign, transfer, pledge, hypothecate or otherwise encumber its rights to receive payments from any State Entity under this Agreement for any reason whatsoever. To the extent State permits Contractor to assign, transfer, pledge, hypothecate or otherwise encumber its rights to receive payments from State under this Agreement, Contractor will continue to be State’s sole point of contact with respect to this Agreement, including with respect to payment. The Person to which such rights are assigned, transferred, pledged, hypothecated or otherwise encumbered will not be considered a third party beneficiary under this Agreement and will not have any rights or causes of action against any State Entity.
Covenant Against Pledging. The Supplier agrees that, without the prior written consent of VITA, it will not assign, transfer, pledge, hypothecate or otherwise encumber its rights to receive payments from VITA under this Agreement for any reason whatsoever. To the extent VITA permits the Supplier to assign, transfer, pledge, hypothecate or otherwise encumber its rights to receive payments from VITA under this Agreement, the Supplier will continue to be VITA’s sole point of contact with respect to this Agreement, including with respect to payment. The person or Entity to which such rights are assigned, transferred, pledged, hypothecated or otherwise encumbered will not be considered a third party beneficiary under this Agreement and will not have any rights or causes of action against VITA.
Covenant Against Pledging. Contractor agrees that, without the prior written consent of OCA, it shall not assign, transfer, pledge, hypothecate or otherwise encumber its rights to receive payments from OCA under this Agreement for any reason whatsoever. To the extent OCA OCA Contract No. 212210180 permits Contractor to assign, transfer, pledge, hypothecate or otherwise encumber its rights to receive payments from OCA under this Agreement, (i) Contractor shall continue to be OCA’s sole point of contact with respect to this Agreement, including with respect to payment, and (ii) the person or entity to which such rights are assigned, transferred, pledged, hypothecated or otherwise encumbered shall not be considered a third party beneficiary under this Agreement and shall not have any rights or causes of action against OCA.
Covenant Against Pledging. Supplier agrees that, without the prior written consent of ABM, it shall not assign, transfer, pledge, hypothecate or otherwise encumber its rights to receive payments from ABM under this Agreement for any reason whatsoever, other than to a Supplier Affiliate. Without limiting the foregoing, in the event of such an assignment, transfer, pledge, hypothecation or other encumbrance of its rights to receive payments from ABM under this Agreement, Supplier shall continue to be ABM’s sole point of contact with respect to this Agreement, including with respect to payment. The person or Entity to which such rights are assigned, transferred, pledged, hypothecated or otherwise encumbered will not be considered a third party beneficiary under this Agreement and will not have any rights or causes of action against ABM.
Covenant Against Pledging. Supplier agrees that, without the prior written consent of Ascension Health, it shall not assign, transfer, pledge, hypothecate or otherwise encumber its rights to receive payments from Ascension Health or another Eligible Recipient under this Agreement for any reason whatsoever. To the extent Ascension Health permits Supplier to assign, transfer, pledge, hypothecate or otherwise encumber its rights to receive payments from Ascension Health or another Eligible Recipient under this Agreement, Supplier shall continue to be Ascension Health’s sole point of contact with respect to this Agreement, including with respect to payment. The person or Entity to which such rights are assigned, transferred, pledged, hypothecated or otherwise encumbered shall not be considered a third party beneficiary under this Agreement and shall not have any rights or causes of action against Ascension.
Covenant Against Pledging. Contractor agrees that, without the prior written consent of AIL, it shall not assign, transfer, pledge, hypothecate or otherwise encumber its rights to receive payments from AIL under this Agreement for any reason whatsoever, except as otherwise expressly permitted under Section 23.1.
Covenant Against Pledging. Contractor agrees that, if it elects (in its discretion) to assign, transfer, pledge, hypothecate or otherwise encumber its rights to receive payments from AOC under this Agreement for any reason whatsoever, (i) Contractor shall continue to be AOC’s sole point of contact with respect to this Agreement, including with respect to payment, and (ii) the person or entity to which such rights are assigned, transferred, pledged, hypothecated or otherwise encumbered shall not be considered a third party beneficiary under this Agreement and shall not have any rights or causes of action directly against AOC, and (iii) such assignment, transfer, pledge, hypothecation or encumbrance shall not be binding on AOC if such would result in a violation of any Law or any provision of Section 13.8.
Covenant Against Pledging. [This clause would prohibit normal financing arrangements. Why is this required?] Contractor agrees that, without the prior written consent of OCA, it shall not assign, transfer, pledge, hypothecate or otherwise encumber its rights to receive payments from OCA under this Agreement for any reason whatsoever. To the extent OCA permits Contractor to assign, transfer, pledge, hypothecate or otherwise encumber its rights to receive payments from OCA under this Agreement, (i) Contractor shall continue to be OCA’s sole point of contact with respect to this Agreement, including with respect to payment, and (ii) the person or Entity to which such rights are assigned, transferred, pledged, hypothecated or otherwise encumbered shall not be considered a third party beneficiary under this Agreement and shall not have any rights or causes of action against OCA.
Covenant Against Pledging. Without the prior consent of Idearc, Provider shall not assign, transfer, pledge, hypothecate or otherwise encumber its rights to receive payments from Idearc under the Agreement for any reason whatsoever.