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Common use of Possession and Transfer of Collateral Clause in Contracts

Possession and Transfer of Collateral. Unless an Event of Default exists hereunder, the Borrowers shall be entitled to possession or use of the Collateral. The cancellation or surrender of any Note, upon payment or otherwise, shall not affect the right of the Bank to retain the Collateral for any other of the Obligations. The Borrowers shall not sell, assign (by operation of law or otherwise), license, lease or otherwise dispose of, or grant any option with respect to any of the Collateral, except that the Borrowers may sell Inventory in the ordinary course of business.

Appears in 1 contract

Samples: Loan and Security Agreement (Smithway Motor Xpress Corp)

Possession and Transfer of Collateral. Unless Until an Event of Default exists has occurred hereunder, the Borrowers Borrower shall be entitled to possession or use of the Collateral. The cancellation or surrender of any the Note, upon payment or otherwise, shall not affect the right of the Bank Agent on behalf of the Lenders to retain the Collateral for any other of the Obligations. The Borrowers Borrower shall not sell, assign (by operation of law or otherwise), license, lease or otherwise dispose of, or grant any option with respect to any of the Collateral, except that the Borrowers Borrower may sell Inventory in the ordinary course of business.

Appears in 1 contract

Samples: Loan and Security Agreement (Medirect Latino Inc)

Possession and Transfer of Collateral. Unless Until an Event of Default exists has occurred hereunder, the Borrowers Borrower shall be entitled to possession or use of the Collateral. The cancellation or surrender of any Notethe Notes, upon payment or otherwise, shall not affect the right of the Bank to retain the Collateral for any other of the Obligations. The Borrowers Borrower shall not sell, assign (by operation of law or otherwise), license, lease or otherwise dispose of, or grant any option with respect to any of the Collateral, Collateral except that the Borrowers may sell Inventory in the ordinary course of business.

Appears in 1 contract

Samples: Loan and Security Agreement (Fortune Industries, Inc.)

Possession and Transfer of Collateral. Unless Until an Event of Default exists has occurred hereunder, the Borrowers shall be entitled to possession or use of the Collateral. The cancellation or surrender of any Notethe Notes, upon payment or otherwise, shall not affect the right of the Bank to retain the Collateral for any other of the Obligations. The Borrowers shall not sell, assign (by operation of law or otherwise), license, lease or otherwise dispose of, or grant any option with respect to any of the Collateral, except that the Borrowers may sell Inventory in the ordinary course of business.

Appears in 1 contract

Samples: Loan and Security Agreement (Global Axcess Corp)