Restrictions on Collateral Clause Samples
The 'Restrictions on Collateral' clause defines the limitations and conditions under which a party may use, pledge, or otherwise encumber collateral provided under an agreement. Typically, this clause specifies that the collateral cannot be used for purposes outside the scope of the agreement, such as securing other debts or being transferred to third parties without consent. By setting these boundaries, the clause ensures that the collateral remains available and unencumbered for its intended purpose, thereby protecting the secured party’s interests and reducing the risk of competing claims.
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Restrictions on Collateral. The Borrower shall not offer any security to secure its obligations or any third party’s obligations (other than those under this Agreement) on or after the Execution Date, and until this Agreement is terminated and the Borrower completes the performance of all of its obligations under this Agreement to each Lender B and the Agent, unless the Majority Lenders B and the Agent give prior written consent therefor. Provided, however, that this provision shall not apply in the cases described below and if the Borrower gives prior written notice to the Agent of such offering of security. For the purpose of this Clause 22, offering security shall mean creating security interests on any assets of the Borrower, promising in advance to create security interests on any specific assets of the Borrower, or promising not to offer any specific assets of the Borrower as security for obligations other than specific obligations, and does not include any security pursuant to Laws and Ordinances, such as liens or possessory liens.
(i) Cases where the Borrower offers security for loans from the Japan Bank for International Cooperation, the Development Bank of Japan, the Government Pension Investment Fund, the Employment and Human Resources Development Organization of Japan or other similar institutions, and such offer of security is required by Laws and Ordinances.
(ii) Cases where the Borrower offers, regarding loans obtained for the purpose of acquiring assets, such assets as security.
(iii) Cases where the Borrower newly acquires assets on which security interests have already been established.
(iv) Cases where the Borrower offers security in its financing activities through the securitization of assets (or so-called liquidation of assets (shisan-no-ryudoka) under Japanese law).
(v) Cases where the Borrower offers any security to FUJITSU LIMITED.
Restrictions on Collateral. The Executive hereby covenants that, except as otherwise provided herein, until such time as all of the outstanding principal and interest on the Note has been repaid, the Executive shall not (a) without the prior written consent of the Company, create, incur, assume or suffer to exist any pledge, security interest, encumbrance, lien or charge of any kind against any Collateral, other than the pledge thereof and security interest therein provided for in this Note, or (b) sell or otherwise transfer any Collateral or any interest therein unless the proceeds associated with such sale or transfer are applied against the accrued and unpaid interest on and principal of the Note at the time of such sale or transfer.
Restrictions on Collateral. Upon an incurable Event of Default Lender may request the Custodial Broker to dispose the Collateral in Lender’s control and Borrower shall have no further redemption rights in the Collateral. ▇▇▇▇▇▇ will credit the Borrower for any dividends received or credited to the Lender’s account, and such credit will be returned to borrower at maturity of the Loan. No dividends will be credited to ▇▇▇▇▇▇▇▇ if the Issuer does not pay them to the Custodial Broker for any reason whatsoever. Upon written request by Borrower to Lender, the Borrower may use dividends received by Lender to offset any interest due to Lender prior to the Maturity Date.
Restrictions on Collateral. The Borrower shall not offer any collateral to secure its obligations or any third party’s obligations (other than those under this Agreement) on and after the date of this Agreement, and until this Agreement is terminated and the Borrower completes the performance of all of its obligations under this Agreement to each Lender and the Agent, unless Majority Lenders and the Agent give prior written consent thereof. Provided, however, that this provision shall not apply in the cases described below and if the Borrower gives prior written notice to the Agent of such offering of collateral. For the purpose of this Clause 20, the offer of collateral shall mean the creation of security interests on any assets of the Borrower, the pre-engagement of the creation of security interests on the particular assets of the Borrower, or the promise not to offer the particular assets of the Borrower as collateral for the obligations other than specific obligations, and does not include any collateral pursuant to the Laws and Ordinances, such as lien or possessory lien.
(i) The cases where the Borrower offers any collateral for borrowings from Japan Bank for International Cooperation, Development Bank of Japan, Government Pension Investment Fund, or Employment and Human Resources Development Organization of Japan and such offer of collateral is required by the Laws and Ordinances.
(ii) The cases where the Borrower offers, regarding loans taken for the purpose of acquiring assets, such assets as collateral.
(iii) The cases where the Borrower newly acquires assets on which security interests have already been established.
(iv) The cases where the Borrower offers any collateral for financing through securitization of assets (or so called liquidation of assets (shisan-no-ryudoka) under the Japanese law).
(v) The cases where the Borrower offers any collateral to the Guarantor.
Restrictions on Collateral. The Companies agree that all of the Collateral shall be held as security for all of the Obligations. The Companies shall not be permitted to make any withdrawals from the Account or to receive any portion of the Collateral unless and until all Obligations have been indefeasibly satisfied in full. The Companies agree that until the Companies are entitled to a return of the Collateral, or so much thereof as remains, it shall not, without the express prior written consent of BANA, transfer the Collateral or any interest therein or enter into any agreement for the transfer of such Collateral, or permit or suffer any other liens, whether or not junior to the lien created hereby, to be created or to exist with respect to the Collateral.
Restrictions on Collateral. Such Grantor will not enter into any agreement creating, or otherwise permit to exist, any restriction or condition upon the transfer, voting, control, or exercise of any Company Rights in respect of any Company other than any such restrictions or conditions contained in the applicable Company’s Company Agreement or similar agreement as of the Closing Date.
Restrictions on Collateral. The Grantors will not enter into any agreement or undertaking that restricts or limits the right or ability of Grantors or Bank to sell, assign or transfer any of their Collateral.
Restrictions on Collateral. Borrower will not enter into any agreement or undertaking that restricts or limits the right or ability of Borrower or Lender to sell, assign, or transfer any of the Collateral.
Restrictions on Collateral. Many security agreements restrict what debtors can do with the collateral. For example, the debtor may be prevented by the agreement from selling the property, terminating a current lease, or allowing a lien to attach to the property.
1. Restrictions on selling
Restrictions on Collateral. Grantor shall not hereafter enter into any agreement or undertaking restricting the right or ability of Grantor or Secured Party to sell, assign or transfer any of the Collateral or, if applicable, to exercise any voting or corporate rights with respect to the Collateral.