Common use of Failure to Deliver Clause in Contracts

Failure to Deliver. Failure to deliver physical possession of any instruments, documents or writings in respect of any Receivable to Lender shall not invalidate Lender's security interest therein. To the extent that possession may be required by applicable law for the perfection of Lender's security interest, the original chattel paper and instruments representing the Receivables shall be deemed to be held by Lender, although kept by the Borrower as the custodial agent of Lender.

Failure to Deliver. Failure to deliver physical possession of any instruments, documents or writings in respect of any Existing Receivable to Lender (including the Custodian, as Custodian and bailee for the Lender) shall not invalidate Lender's ’s security interest therein. To the extent that possession may be required by applicable law for the perfection of Lender's ’s security interest, the original chattel paper and instruments representing the Existing Receivables so held by a Borrower shall be deemed to be held by Lender, although kept by the such Borrower as the custodial agent of Lender.

Failure to Deliver. Failure to deliver physical possession of any instruments, documents or writings in respect of any Receivable Account to Lender shall not invalidate Lender's security interest therein. To the extent that possession may be required by applicable law for the perfection of Lender's security interest, the original chattel paper and instruments representing the Receivables Accounts shall be deemed to be held by Lender, although kept by the Borrower or Guarantor as the custodial agent of Lender.