RIGHTS AS TO COLLATERAL Sample Clauses
The "Rights as to Collateral" clause defines the lender's legal rights and interests in the collateral provided by the borrower to secure a loan or obligation. Typically, this clause outlines the lender's ability to take possession of, sell, or otherwise deal with the collateral if the borrower defaults on their obligations. For example, if a borrower pledges equipment or inventory as collateral, the lender may have the right to seize and sell those assets to recover outstanding debts. The core function of this clause is to protect the lender by ensuring they have a clear and enforceable claim to specific assets, thereby reducing the risk of loss in the event of borrower default.
RIGHTS AS TO COLLATERAL. Upon the occurrence of an Event of Default and after any applicable grace period, and at any time thereafter, in addition to other rights and remedies the Lender has under this Agreement, the Lender may:
15.05.1 Notify account debtors at Borrower's expense, that the Collateral has been assigned to Lender and that payments shall be made directly to Lender and upon request of Lender, Borrower will so notify such account debtor that their accounts must be paid to Lender. This right may be exercised by the Lender at any time, even prior to default. Borrower will immediately upon receipt of all checks, drafts, cash and other remittances deliver the same in kind to the Lender. Lender shall have full power to collect, compromise, endorse, sell or otherwise deal with the Collateral or proceeds thereof in its own name or in the name of Borrower and Borrower hereby, for consideration paid, irrevocably appoints the Lender its attorney-in-fact for this purpose.
15.05.2 Without notice to Borrower, enter and take possession of all Collateral and the Project on which they are now or hereafter located, including without limitation, breaking the close and changing and replacing locks as may be required without the same being considered as a trespass, as Borrower hereby expressly provides authority for the same. The Lender, at its sole discretion, may operate and use Borrower's equipment, complete work in process and sell inventory without being liable to the Borrower on account of any losses, damage or depreciation that may occur as a result thereof so long as Lender shall act reasonably and in good faith and may lease or license the Collateral to third persons or entities for such purposes; and in any event, Lender may at its option and without notice to Borrower, except as specifically herein provided, sell, lease, assign and deliver, the whole or any part of the Collateral, or any substitute therefore, or any addition thereto, at public or private sale, for cash, upon credit, or for future delivery, at such prices and upon such terms as Lender deems advisable, including without limitation the right to sell or lease in conjunction with other property, real or personal, and allocate the sale proceeds or leases among the items of property sold without the necessity of the Collateral being present at any such sale, or in view of prospective purchasers thereof. Lender shall give Borrower timely notice by hand delivery to Borrower or by United States mail, postage prepaid (in...
RIGHTS AS TO COLLATERAL. (a) If, on the Facility B Maturity Date, the Borrower shall not have paid in full all the Facility B Obligations which are due and payable on such Facility B Maturity Date, the Agent, at the direction of the Required Lenders, shall take (and/or shall cause one or more of its designees to take) any or all of the following actions, after giving at least three Business Days' (which notice period the Borrower acknowledges to be adequate and reasonable) written notice to the Borrower (a single such notice being sufficient to entitle the Agent to take one or more of the actions described below):
(i) prohibit the Borrower from taking any action otherwise permitted by Section 8.03(a) hereof, and/or discharge the Borrower from their right to manage and administer the items of Collateral as provided in Section 8.03(b) hereof;
(ii) notify the obligors or other parties interested in any item of the Collateral of the interest of the Lenders therein and of any action proposed to be taken with respect thereto, and inform any of those parties that all payments otherwise payable to the Borrower with respect thereto thereafter shall be made to the Agent until all the Facility B Obligations have been paid in full;
(iii) receive and retain all payments and all other distributions of any kind with respect to any and all of the Collateral;
(iv) exercise any rights of voting or consent pertaining to any item of Collateral to the same extent as if the Agent were the outright owner thereof for the benefit of the Lenders, or cause any item of the Collateral to be transferred to its own name and have such transfer recorded in any place or places deemed appropriate by the Agent;
(v) deal with the Collateral in all respects as if it were the outright owner thereof for the benefit of the Lenders;
(vi) take such action as directed by the Required Lenders with respect to the sale, assignment and delivery of the whole of, or from time to time any one or more items of, the Collateral, including, without limitation: to sell, assign and deliver the whole of, or from time to time any part of, the Collateral at any broker's board or at any private sale or at public auction, with or without demand on the Borrower or advertisement of the time or place of sale or adjournment thereof or otherwise, for cash, for credit or for other property, for immediate or future delivery, and for such price or prices and on such terms as the Required Lenders in their discretion may determine, and the Agent or an...
RIGHTS AS TO COLLATERAL. Each Creditor acknowledges the other’s right, on a pari passu basis, in the Collateral and a lien therein securing the indebtedness of each Creditor evidenced by the Notes. Neither Creditor will challenge or contravene the perfection of the security interests of the other Creditor. Each Creditor agrees to hold and administer, as trustee for the pro rata benefit of itself and the other Creditor, any agreements or other security instruments or interests that may be conveyed or granted to it pursuant to the provisions of its respective Loan Documents and, upon either Creditor receiving any proceeds from any sale, assignment, foreclosure or other disposition of or realization upon any of the Collateral, such Creditor will hold such proceeds, to the extent it may legally do so, for the ratable benefit of itself and the other Creditor and will apply the same in accordance with the provisions of this Article.