Prejudice to security Clause Samples
The 'Prejudice to security' clause is designed to protect the interests of a secured party by ensuring that nothing in the agreement undermines or diminishes their security rights. In practice, this clause clarifies that any actions, amendments, or waivers under the contract must not adversely affect the validity, priority, or enforceability of the security interest granted. Its core function is to maintain the integrity of the security arrangement, preventing any contractual changes from inadvertently weakening the secured party's position or exposing them to additional risk.
Prejudice to security. Anything is done or suffered or omitted to be done by any Obligor which in the reasonable opinion of the Agent would or might be expected to imperil the security created by any of the Security Documents.