Pledged Policies Sample Clauses
The 'Pledged Policies' clause defines the requirement for certain insurance policies to be pledged as collateral in a contractual arrangement. Typically, this means that the policyholder assigns the rights or benefits of an insurance policy to a lender or other secured party, often as security for a loan or other obligation. For example, if a borrower takes out a loan, the lender may require the borrower to pledge a life insurance policy so that, in the event of default, the lender can claim the policy proceeds. This clause ensures that the secured party has a legal claim to the policy's benefits, thereby reducing their risk and providing additional assurance that the underlying obligation will be satisfied.
Pledged Policies. The Borrower shall maintain the Pledged Policies in full force and effect and if any Pledged Policy enters a “grace period”, the Borrower shall pay all Premiums due and payable with respect to such Pledged Policy and shall restore such Pledged Policy to good standing, in each case, within six (6) Business Days after the start of such “grace period”.
Pledged Policies. The Borrower shall maintain the Pledged Policies in full force and effect and not in a state of grace; provided that failure to do so solely as a result of any uncured Lender Default will not comprise a breach of this covenant.
Pledged Policies. The Borrower shall maintain the Pledged Policies in full force and effect and not in a state of grace; provided that failure to do so solely as a result of (i) any uncured Lender Default, (ii) the failure by the Administrative Agent to apply amounts on deposit in the Escrow Account in accordance with Section 5.2(d) to fund the same, which amounts are sufficient to pay Premiums on the Pledged Policies or the election by the Administrative Agent to deliver an Alternative Information Notice pursuant to Section 5.2(h) and the amount of Premiums funded is less than the amount set forth in the Calculation Date Report in respect of which such Alternative Information Notice was delivered, or (iii) the abandonment of a Pledged Policy in accordance with Section 2.7(b), will not comprise a breach of this covenant; provided further that with respect to any Pledged Policy set forth on the Initial Advance Lexington Schedule, such Pledged Policy may have been in a state of grace on the Initial Closing Date but the Borrower caused such Pledged Policy to no longer be in state of grace by June 30, 2013.
Pledged Policies. As of the Third Amendment and Restatement Date, (a) no Policy that was a Pledged Policy as of the Third Amendment and Restatement Date was subject to any Law that made unlawful the sale, transfer or assignment of such Pledged Policy and (b) with respect to each Policy that was a Pledged Policy as of the Third Amendment and Restatement Date, the Borrower was not aware of any agreements, documents, assignments or instruments related to such Policy except for those documents, assignments, and instruments that constitute and were included in the related Collateral Package that was delivered to the Lender and such Collateral Package contained, at the very least, the documents set forth in the Security Account Control and Custodian Agreement.
Pledged Policies. The Borrower shall maintain the Pledged Policies in full force and effect and not in a state of grace; provided that failure to do solely as a result of (i) any uncured Lender Default, (ii) the failure by the Administrative Agent to apply amounts on deposit in the Escrow Account in accordance with Section 5.2(d) to fund the same, which amounts are sufficient to pay Premiums on the Pledged Policies or (iii) the abandonment of a Pledged Policy in accordance with Section 2.7(b), will not comprise a breach of this covenant; provided further that with respect to any Pledged Policy set forth on the Initial Advance Lexington Schedule, such Pledged Policy may be in a state of grace on the Closing Date but the Borrower shall cause such Pledged Policy to no longer be in state of grace by June 30, 2013.