Good Title and First Lien Clause Samples
The "Good Title and First Lien" clause ensures that the party granting a security interest or transferring property has clear, undisputed ownership (good title) and that the recipient's interest will be the highest priority claim (first lien) on the asset. In practice, this means the grantor must guarantee there are no prior claims, encumbrances, or competing interests that could challenge the recipient's rights, such as previous mortgages or liens. This clause is essential for protecting the recipient from unexpected third-party claims and provides assurance that their interest in the asset is secure and enforceable.
Good Title and First Lien. The Borrower has good and marketable title to such Finance Lease and the Collateral Agent shall have a first priority, perfected security interest in the Borrower’s rights in such Finance Lease;