Common use of Right to Grant Security Interest Clause in Contracts

Right to Grant Security Interest. It has the right to grant a security interest in its Equipment Collateral. It will pay all taxes and other charges against its Equipment Collateral. It will not use the Equipment Collateral illegally or allow its Equipment Collateral to be encumbered except for the security interest in favor of Lender granted herein and except for any Permitted Encumbrances.

Right to Grant Security Interest. It has the right to grant a security interest in its Equipment Inventory Collateral. It will pay all taxes and other charges against its Equipment Inventory Collateral. It , and it will not use the Equipment its Inventory Collateral illegally or allow its Equipment Inventory Collateral to be encumbered except for the security interest in favor of Lender granted herein and except for any Permitted Encumbrances.