French Collateral Clause Samples
The French Collateral clause defines the rules and requirements for providing collateral under French law within a contractual relationship. It typically outlines the types of assets that can be used as collateral, the procedures for perfecting security interests, and the rights and obligations of the parties involved. For example, it may specify how securities or cash are to be held, transferred, or returned in accordance with French legal standards. The core function of this clause is to ensure that collateral arrangements are legally enforceable and compliant with French regulations, thereby reducing legal uncertainty and protecting the interests of both parties.
French Collateral. In accordance with Article 2328-1 of the French Civil Code, each of the Administrative Agent, the Collateral Agent, the Lenders and each other Secured Party agrees that the Collateral Agent, for the benefit of the Secured Parties, shall have the right to constitute, register, manage and enforce each Lien in any Collateral granted pursuant to any Security Document by any Borrower Party.
French Collateral. (i) Each Secured Party (other than the Collateral Agent) (as mandant):
(a) irrevocably and unconditionally appoints the Collateral Agent to act as agent (mandataire), pursuant to article 1984 of the French Civil Code (with full power to appoint and to substitute and to delegate) on its behalf to execute any French Security Document in its name and do anything upon the terms and conditions set out in this Agreement under or in connection with the French Security Documents, including, if need be, the appointment of a custodian which shall hold assets on its behalf (including, as may be the case, share certificates or share registries relating to shares in the capital of any debtor) in custody under any French Security Document, and the Collateral Agent accepts such appointment;
(b) confirms its approval of the French Security Documents creating or expressed to create French Transaction Security benefiting it and any French Transaction Security created or to be created pursuant thereto and irrevocably authorizes (with power of delegation), empowers and directs the Collateral Agent (by itself or by such person(s) as it may nominate) to execute and deliver for and on its behalf each French Security Document, to perform the duties and to exercise the rights, powers and discretions that are specifically delegated to the Collateral Agent or any Secured Party under or in connection with the French Security Documents, together with any other rights, powers and discretions which are incidental thereto and to give a good discharge for any moneys payable under the Security Documents; and
(c) acknowledges that the Collateral Agent has been appointed by it to constitute, register, manage and enforce all French Transaction Security created in its favour by any French Security Documents, and agrees that the French Transaction Security to its nomination in accordance with applicable law from time to time.
(ii) The Collateral Agent will act solely for itself (as Secured Party) and as agent for the other Secured Parties in carrying out its functions as collateral agent under the relevant French Security Documents and this Agreement.
(iii) In relation to French Security Documents, the relationship between the Secured Parties (other than the Collateral Agent) and the Collateral Agent is that of principal and agent only. The Collateral Agent shall not have, or be deemed to have, assumed any obligations to or fiduciary relationship with, any Party other than those for which speci...