Common use of Lender Security Clause in Contracts

Lender Security. Any and all indebtedness of Borrower now or hereafter owed to Guarantor and all claims whenever arising of Guarantor against Borrower are hereby subordinated to the Obligations and assigned to Lender as additional collateral. If Lender so requests, any note or other instrument evidencing such indebtedness and all claims of Guarantor against Borrower shall be delivered to Lender, and such indebtedness and all claims of Guarantor against Borrower shall be collected, enforced and received by Guarantor as trustee for Lender and be paid over to Lender on account of the Obligations but without reducing or affecting in any manner the liability of Guarantor hereunder. Should Guarantor fail to collect proceeds of debt owed to Guarantor by Borrower, or fail to pay any such proceeds received by Guarantor pursuant to this Section 7 or otherwise to Lender, Lender as Guarantor's attorney-in-fact may do such acts and sign such documents in Guarantor's name as Lender considers necessary to effect such collection, and Guarantor hereby irrevocably appoints Lender as Guarantor's attorney-in-fact for such purposes.