Other Security; Marshaling Clause Samples
The 'Other Security; Marshaling' clause defines how a lender may use or prioritize various forms of collateral or security interests provided by a borrower. In practice, this clause allows the lender to choose the order in which different assets or securities are applied to satisfy a debt, and it may also address the lender's right to avoid being restricted by the principle of marshaling, which would otherwise require equitable distribution among creditors. Its core function is to give the lender flexibility and control over the enforcement of security interests, thereby reducing the risk of complications or delays in debt recovery.
Other Security; Marshaling. (a) To the extent that any of the Secured Obligations are now or hereafter secured by property other than the Pledged Collateral (including real property and securities owned by a Pledgor or any other Person), or by a guarantee agreement, endorsement or property of any other Person, then the Collateral Agent and the other Secured Parties shall have the right to proceed against such other property, guarantee agreement or endorsement upon the occurrence and during the continuance of any Event of Default, and the Collateral Agent and the other Secured Parties have the right, in their sole discretion, to determine which rights, security, Liens, security interests or remedies the Collateral Agent and the other Secured Parties shall at any time thereafter pursue or take, or at any time relinquish, subordinate or modify with respect thereto, without in any way modifying or affecting any of them or any of the Collateral Agent’s and the other Secured Parties’ rights or the Secured Obligations under this Pledge Agreement, under any other of the Credit Documents or otherwise.
(b) The Collateral Agent shall not be required to marshal any present or future collateral security (including but not limited to the Pledged Collateral) for, or other assurances of payment of, the Secured Obligations or any of them or to resort to such collateral security or other assurances of payment in any particular order, and all of its rights and remedies hereunder and in respect of such collateral security and other assurances of payment shall be cumulative and in addition to all other rights and remedies, however existing or arising. To the extent that it lawfully may, each Pledgor hereby agrees that it will not invoke any law relating to the marshaling of collateral which might cause delay in or impede the enforcement of the Collateral Agent’s rights and remedies under this Pledge Agreement or under any other instrument creating or evidencing any of the Secured Obligations or under which any of the Secured Obligations is outstanding or by which any of the Secured Obligations is secured or payment thereof is otherwise assured, and, to the extent that it lawfully may, each Pledgor hereby irrevocably waives the benefits of all such laws.
Other Security; Marshaling. To the extent that any of the Secured Obligations are now or hereafter secured by property other than the Collateral (including real property and securities owned by an Obligor or any other Person), or by a guarantee agreement, endorsement or property of any other Person, then the Collateral Agent and the other Secured Parties shall have the right to proceed against such other property, guarantee agreement or endorsement upon the occurrence and during the continuance of any Event of Default, and the Collateral Agent and the other Secured Parties have the right, in their sole discretion, to determine which rights, security, Liens, security interests or remedies the Collateral Agent and the other Secured Parties shall at any time thereafter pursue or take, or at any time relinquish, subordinate or modify with respect thereto, without in any way modifying or affecting any of them or any of the Collateral Agent’s and the other Secured Parties’ rights or the Secured Obligations under this Security Agreement, under any other of the Credit Documents or otherwise.