Common use of EFFECT OF SECURITY AGREEMENT Clause in Contracts

EFFECT OF SECURITY AGREEMENT. Borrower acknowledges, agrees, represents, and warrants that the liens and security interests granted by Borrower to the Bank pursuant to the Original Loan Documents shall remain in full force and effect and that, when the Partnership is merged into the LLC and the Bank obtains a security interest in Borrower's economic and other membership interest in the LLC (which constitutes proceeds of the interest in the Partnership), the Bank shall have an uninterrupted, continuing security interest of first priority in said interest in the LLC (and in all other collateral described in the Original Security Agreement) as well as in the collateral described in the New Security Agreement executed pursuant hereto. Said liens and security interests in favor of the Bank securing the obligations described herein, in the New Note and the other New Documents executed pursuant hereto is of first priority, subject to no liens, claims, encumbrances, offsets or defenses of any kind.