Operation of the Collateral Sample Clauses
The 'Operation of the Collateral' clause defines how collateral provided under an agreement may be used, managed, or controlled by the secured party. Typically, this clause outlines the rights and responsibilities regarding the maintenance, substitution, or use of the collateral, such as whether the secured party can collect income generated by the collateral or must keep it segregated. Its core function is to clarify the parties' expectations and obligations concerning the handling of collateral, thereby reducing disputes and ensuring the security interest is properly maintained.
Operation of the Collateral. Debtor agrees to maintain and use the Collateral solely in the conduct of its own business, in a careful and proper manner, and in conformity with all applicable permits or licenses. Debtor shall comply in all respects with all applicable statutes, laws, ordinances and regulations. Debtor shall not use the Collateral in any unlawful manner or for any unlawful purposes, or in any manner or for any purpose that would expose the Collateral to unusual risk, or to penalty, forfeiture or capture, or that would render inoperative any insurance in connection with the Collateral.
Operation of the Collateral. Debtor agrees to maintain and use the --------------------------- Collateral solely in the conduct of its own business, in a careful and proper manner, and to the extent failure to do so would have a Material Adverse Effect, in conformity with all applicable permits or licenses. Debtor shall comply in all material respects with all requirements of law of any governmental authority having jurisdiction over its business, except such (a) as may be contested in good faith by appropriate proceedings and adequate reserves have been established and are maintained in accordance with GAAP and deemed adequate by Debtor, and (b) as to which such failure to comply would not have a Material Adverse Effect. Debtor shall not use the Collateral in any unlawful manner or for any unlawful purposes, or in any manner or for any purpose that would expose the Collateral to unreasonable risk including, without limitation, unreasonable risk of penalty, forfeiture or capture.
Operation of the Collateral. Grantor agrees to maintain and use the Collateral solely in the conduct of its own business, in a careful and proper manner, and in conformity with all applicable permits or licenses. Grantor shall comply in all material respects with all applicable statutes, laws, ordinances and regulations. Grantor shall not use the Collateral in any unlawful manner or for any unlawful purposes, or in any manner or for any purpose that would expose the Collateral to unusual risk, or to penalty, forfeiture or capture, or that would render inoperative any insurance in connection with the Collateral.
Operation of the Collateral. Debtor agrees to maintain and use the Collateral solely in the conduct of its own business. All Collateral will be maintained in a careful and proper manner, and in conformity in all material respects with all applicable
Operation of the Collateral. Debtor agrees to maintain and use the Collateral solely in the conduct of its own business, in a careful and proper manner, and in conformity with all applicable permits or licenses. Debtor shall comply in all material respects with all applicable statutes, laws, ordinances and regulations.
Operation of the Collateral. Debtor agrees to maintain and use the Collateral solely in the conduct of its own business. All Collateral will be maintained in a careful and proper manner, and in conformity in all material respects with all applicable material permits or licenses. Debtor shall comply in all respects with all applicable statutes, laws, ordinances and regulations, if failure to so comply could reasonably be expected to have a Material Adverse Effect. Debtor shall not use the Collateral in any unlawful manner or for any unlawful purposes (if use in an unlawful manner or for an unlawful purpose could reasonably be expected to have a Material Adverse Effect), or in any manner or for any purpose that would expose the Collateral to unusual risk (taking into account the nature of the oil and gas drilling business), or to penalty, forfeiture or capture, or that would render void, inoperative or unenforceable any insurance in connection with the Collateral. Notwithstanding the foregoing, it is understood and agreed that (i) the Collateral is used in the oil and gas drilling business, (ii) a portion of the inventory is located in foreign countries which present risk of political expropriation, civil unrest or other upheaval, (iii) certain of Debtor's sales agents in foreign countries may be or could become undercapitalized and involve inherent credit risk and (iv) Debtor's inventory of rental tools is not covered by insurance.
Operation of the Collateral. Pledgor agrees to maintain and use the Collateral solely in the conduct of its own business, in a careful and proper manner, and in conformity with all applicable laws, ordinances, regulations, permits and licenses. Pledgor shall comply in all respects with all applicable statutes, laws, ordinances and regulations.