Pledge or Encumbrance Clause Samples
The Pledge or Encumbrance clause restricts a party from using certain assets as collateral or otherwise burdening them with third-party claims without prior consent. In practice, this means that the party cannot pledge, mortgage, or grant security interests over specified property, such as equipment or intellectual property, during the term of the agreement. This clause serves to protect the other party’s interests by ensuring that key assets remain unencumbered and available, thereby reducing the risk of conflicting claims or diminished asset value.
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Pledge or Encumbrance. A Member may with the prior written consent of the Managing Member pledge or encumber its rights to receive distributions hereunder upon written notice to the Managing Member and all other Members; provided however, that any Person who is granted such pledge or encumbrance or who executes thereon shall have no rights of approval, consent, voting or other participation in the operation or governance of the Company, and shall only have the right to receive distributions hereunder when and as distributions are made by the Managing Member under the terms and conditions of this Agreement, with no right to cause such distributions to be made. Neither the Managing Member nor the Company shall have any liability to any Person, whether or not a Member, due to any distribution(s) made in accordance with such written notice as it has received as of the date of such distribution, and Managing Member may, in the event of a dispute, deposit the disputed distribution with any court of competent jurisdiction in an action of interpleader (or analogue thereto) and shall thereafter be discharged from any and all obligation and liability in connection with such disputed distribution.
Pledge or Encumbrance. If any Transferee Stockholder proposes to pledge or encumber shares of Common Stock, such Transferee Stockholder may not, after the Offer with respect to those shares of Common Stock has been rejected by the Company, the Family Members and the Remaining Stockholders, pledge or encumber shares of Common Stock without first having requested in writing to borrow from the Company and the Remaining Stockholders on the same terms and conditions of any proposed borrowing contemplating such proposed pledge or encumbrance. Thereupon, such Transferee Stockholder may make such pledge or encumbrance as to those shares of Common Stock with respect to which such request has not been granted by either the Company or the Remaining Stockholders within thirty (30) days after their receipt of such request. The Remaining Stockholders’’ participation in any advance to such Transferee Stockholder will be calculated in the same manner as provided in Section 6.1.3 of this Agreement. If such offer to pledge or encumber shares of Common Stock is made to the Company and the Remaining Stockholders in accordance with this Section 6.3.2, the Free Transfer Period will commence on the earlier of (x) the date of receipt by the Transferee Stockholder of the last rejection of such request from Company and all of the Remaining Transferee Stockholders or (y) the thirtieth (30th) day after the date of such request. Any shares of Common Stock which are not pledged or encumbered during the Free Transfer Period will again become subject to all of the restrictions of this Agreement and may not be subsequently transferred without compliance with the terms of this Agreement.
Pledge or Encumbrance. Notwithstanding any other provision of --------------------- this Lease to the contrary, Tenant shall not pledge or encumber its interest under this Lease, nor shall Tenant permit any pledge or encumbrance by any assignee or subtenant, without Landlord's express prior written consent, which may be withheld in Landlord's sole and absolute discretion.
Pledge or Encumbrance. RGMC shall not pledge or otherwise encumber this Lease or the Leased Water, provided, however, that the Leased Water may be included in a plan for augmentation or replacement plan, including augmentation or replacement of past, present, or future well depletions, subject to the terms and conditions of this Lease.
Pledge or Encumbrance. The Company shall not pledge or encumber its assets without the consent of the Bank, except that the Company shall be entitled to grant a security interest in the real estate and personal property of each separate new company-owned store created by the Company after the date hereof.
Pledge or Encumbrance. If any of the Property of Borrower shall be transferred, assigned, pledge or encumbered in any respect except as expressly permitted by the Loan Documents.