Common use of No Pledge of Membership Interests Clause in Contracts

No Pledge of Membership Interests. No Member shall be entitled to pledge, hypothecate, grant a security interest or lien in or against, or otherwise encumber (collectively, "pledge") all or any part of its Membership Interest unless such pledge is approved by a Supermajority Vote of the Management Committee. In the event that a Member pledges all or any part of its Membership Interest in violation of this Section 10.1, such Member shall continue to be a Member but shall cease to hold any rights to participate in the management of the business and affairs of the Company, as applicable, and shall cease to have any right to elect or appoint a Representative until such pledge is extinguished, and, if applicable, such defaulting Member's Representative shall immediately cease to be a Representative on the Management Committee.