Funds as Collateral Sample Clauses
The 'Funds as Collateral' clause establishes that certain funds held by one party can be used as security for obligations under an agreement. In practice, this means that if a party fails to meet its contractual duties, the other party may access or retain these funds to cover losses or outstanding amounts. This clause is commonly used in financial or lending agreements to reduce credit risk and ensure that there is a readily available source of repayment if obligations are not fulfilled.
Funds as Collateral. Any deposit made into the Project Accounts hereunder (except through clerical or other manifest error or in a manner that is otherwise inconsistent with this Agreement) shall be irrevocable and all cash, cash equivalents, Permitted Investments, instruments, and other Securities on deposit in the Project Accounts shall be subject to a Security Interest in favor of the Collateral Agent (on behalf of the Secured Parties) pursuant to the Security Agreement and shall be held by the Collateral Agent as Collateral for the benefit of the Secured Parties as provided herein.
Funds as Collateral. All cash, Cash Equivalents, instruments, securities and other investment property on deposit in or credited to the Project Accounts shall be subject to the Lien of the Lender pursuant to the Security Documents, and shall be held by the Lender as collateral for the Obligations.