NO SECURITY TAKEN Clause Samples

The "No Security Taken" clause establishes that the lender or creditor does not require the borrower to provide any collateral or security interest for the obligations under the agreement. In practice, this means that the borrower is not required to pledge assets such as property, equipment, or receivables to secure the loan or credit facility. This clause is commonly used in unsecured lending arrangements, where the lender relies solely on the borrower's creditworthiness. Its core function is to clarify that the lender has no claim over specific assets if the borrower defaults, thereby simplifying the agreement and reducing administrative burdens for both parties.
NO SECURITY TAKEN. The Guarantor declares that he has not taken and undertakes not to take, directly or indirectly, from the Borrower in respect of its liabilities and obligations hereunder, any security of any nature whatsoever whereby the Guarantor or any person claiming under the Guarantor might in the Borrower’s bankruptcy or winding up or liquidation increase the proofs in such bankruptcy or liquidation or diminish the assets available for distribution to the Lender’s detriment. In the event any security is or may hereafter be held by the Guarantor from the Borrower in respect of its liabilities or obligations hereunder, the same shall be held on trust for the Lender and as security for the Guarantor’s liabilities and obligations hereunder and handed to the Lender forthwith.
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Related to NO SECURITY TAKEN

  • No Security Your Account is unsecured. We are not taking a security interest in any property in connection with your Account.

  • No Security Interest Holders shall have no security interest in any of the Company’s assets or other collateral. Nothing in this Revenue Sharing Agreement or in the Notes, express or implied, shall be construed to constitute a security interest under the Uniform Commercial Code or similar legislation, now in effect or hereaHer enacted and made effective, in any jurisdiction.

  • No Security Interest Created Nothing in this Indenture or in the Notes, expressed or implied, shall be construed to constitute a security interest under the Uniform Commercial Code or similar legislation, as now or hereafter enacted and in effect, in any jurisdiction.

  • No Set-Off The Company's obligation to make the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any circumstances, including, without limitation, any set-off, counterclaim, recoupment, defense or other right which the Company may have against the Employee or others.

  • No Service Charge None of the Issuer, the Note Registrar or the Indenture Trustee will impose a service charge on a Noteholder for the registration of transfer or exchange of Notes. The Issuer, the Note Registrar or the Indenture Trustee may require the Noteholder to pay an amount to cover taxes or other governmental charges that may be imposed for the registration of transfer or exchange of the Notes.