Security for Secured Notes Sample Clauses
The 'Security for Secured Notes' clause establishes the collateral or assets pledged by the borrower to secure the repayment of the notes issued under the agreement. Typically, this clause details the specific property, accounts, or other assets that will serve as security, and outlines the lender's rights to seize or enforce against these assets if the borrower defaults. By defining the security interest, this clause protects the lender by reducing credit risk and providing a clear mechanism for recourse in the event of non-payment.
Security for Secured Notes. Prior to the issuance of the Notes on the Closing Date, the Issuer shall cause the following conditions to be satisfied:
Security for Secured Notes. Advances evidenced by a Secured Note will be secured under the terms of the Security Agreement. At any time any portion of the outstanding principal balance of the Advances is evidenced by a Secured Note, the Borrower will at all times maintain investment property in the Custodial Account subject to the Security Agreement which constitute Permissible Investments with a market value of not less than 105.3% of the outstanding principal balance of such Secured Note (the “Collateral Requirement”). If the Collateral Requirement is not satisfied for any period of ten (10) consecutive Business Days (the “Cure Period”), the Borrower shall be deemed to have elected to borrow the Advances outstanding under such Secured Note on an unsecured basis, and such deemed election shall be immediately effective as of the close of the Bank’s business on the last day of the Cure Period. If Borrower is borrowing under both Lines of Credit on a secured basis, and the Collateral Requirement is satisfied for one, but not both, Secured Notes, Bank shall implement this Section 2.7 so as to maximize the secured Advances.