Lien in Collateral Sample Clauses
A 'Lien in Collateral' clause establishes the lender's legal right or interest in specific assets (the collateral) provided by the borrower to secure a loan or obligation. This clause typically details which assets are subject to the lien, the conditions under which the lien is created, and the lender's rights to enforce the lien if the borrower defaults. For example, it may apply to inventory, equipment, or receivables owned by the borrower. The core function of this clause is to protect the lender by granting them a security interest in the collateral, ensuring they have a means to recover their funds if the borrower fails to meet their obligations.
Lien in Collateral. The provisions of this Agreement and the other Loan Documents create legal and valid Liens on all the Collateral in favor of the Collateral Agent, for the benefit of the Holders of Secured Obligations, and, to the extent required by the Security Agreements, such Liens constitute perfected and continuing Liens on the Collateral, securing the Secured Obligations and having priority over all other Liens on the Collateral except in the case of (a) Permitted Encumbrances and other Liens permitted under this Agreement and (b) Liens perfected only by possession (including possession of any certificate of title) to the extent the Collateral Agent has not obtained or does not maintain possession of such Collateral.
Lien in Collateral. The Pledge Agreement creates a valid and perfected first priority Lien in the Collateral, subject only to Permitted Liens described in Section 6.05(a), and all filings and other actions necessary to perfect and protect such Lien have been taken.