Common use of Local security requirements Clause in Contracts

Local security requirements. Upon the occurrence of and during the continuance of a Liquidity Event, the Agent may require the Borrowers to, and the Borrowers thereafter agree to use commercially reasonable efforts to undertake in a timely fashion to, comply with any requirements under local law of any jurisdiction where a Loan Party is located (as may be required or reasonably deemed advisable by counsel to the Lenders or any Agent) to establish, maintain, and perfect its security and priority over the Accounts of any or all of the German Borrowers, including Accounts which arise from Account Debtors located in a jurisdiction other than Germany, including without limitation, entering into and causing to become effective any security agreements or other documents, completing any filings with local regulatory or other authorities or providing notifications to Account Debtors or other parties, in each case within Germany or in the jurisdiction where any relevant Account Debtor is located or formed. It is understood that should the Borrowers fail to provide such additional security, the Agent may institute an Availability Reserve as to the applicable Eligible German Accounts.