Common use of Creation, Perfection and Priority of Security Interests Clause in Contracts

Creation, Perfection and Priority of Security Interests. (A) While it is the intention of BASHC and the Second Tier Purchaser that the transfer and assignment contemplated by this Agreement shall constitute a sale of the related Second Tier Purchased Assets from BASHC to the Second Tier Purchaser, this Agreement creates a valid and continuing security interest (as defined in the applicable UCC) in each Receivable and the related Second Tier Purchased Assets in favor of the Second Tier Purchaser, which security interest is prior to all other Liens, and is enforceable as such against creditors of and purchasers from BASHC. (B) The Receivables constitute either “tangible chattel paper” or “electronic chattel paper”, each within the meaning of the applicable UCC.

Creation, Perfection and Priority of Security Interests. (A) While it is the intention of BASHC BANA and the Second First Tier Purchaser that the transfer and assignment contemplated by this Agreement shall constitute a sale of the related Second First Tier Purchased Assets from BASHC BANA to the Second First Tier Purchaser, this Agreement creates a valid and continuing security interest (as defined in the applicable UCC) in each Receivable and the related Second Tier Purchased Assets in favor of the Second First Tier Purchaser, which security interest is prior to all other Liens, and is enforceable as such against creditors of and purchasers from BASHCBANA. (B) The Receivables constitute either “tangible chattel paper” or “electronic chattel paper”, each within the meaning of the applicable UCC.