Common use of Pledge of Collateral Clause in Contracts

Pledge of Collateral. In order to protect the Lender if the promises made in this Note are not kept, and as security for the Borrower's repayment of its obligations as set forth in this Note (the "Obligations"), the Borrower hereby grants to the Lender a security interest in and a lien on the Common Stock (the "Collateral") purchased in accordance with this Note and held by Lender in its safe at Penn-America Insurance Company, under the control of the General Counsel. The parties intend that this Note shall constitute a "security agreement" within the meaning and for purposes of, and as defined in the Pennsylvania Uniform Commercial Code, 13 PACSA Section 4101 et seq. (the "Code").

Pledge of Collateral. In order to protect the Lender if the promises made in this Note are not kept, and as security for the Borrower's repayment of its obligations as set forth in this Note (the "Obligations"), the Borrower hereby grants to the Lender a security interest in and a lien on the Common Stock (the "Collateral") purchased in accordance with this Note and held by Lender in its safe at Penn-America Insurance Company, under the control of the General CounselController. The parties intend that this Note shall constitute a "security agreement" within the meaning and for purposes of, and as defined in the Pennsylvania Uniform Commercial Code, 13 PACSA Section 4101 et seq. (the "Code").