Security Interest and Hypothec. As general and continuing security for the payment and performance of all Obligations (as defined in Section 3 below), each Debtor hereby grants to Secured Party a security interest in, and a hypothec on, all of the Debtor’s present and after-acquired undertaking and property, both real and personal (movable), tangible (corporeal) and intangible (incorporeal) (collectively called the “Collateral”), and, as further general and continuing security for the payment and performance of the Obligations, the Debtor hereby also assigns the Collateral (other than trademarks) to Secured Party and mortgages and charges the Collateral as and by way of a fixed and specific mortgage and charge to Secured Party. Without limiting the generality of the foregoing, the Collateral includes all right, title and interest that each Debtor now has or may hereafter have or acquire in any manner whatsoever (including by way of amalgamation) in all property of the following kinds:
Security Interest and Hypothec. (a) The limited rights of recourse specified herein against Merchant are intended to provide a remedy for breach of Merchant’s representations and warranties relating to the condition of the property sold, rather than to the collectability of the Future Receivables. In the event that, notwithstanding the intent of the parties hereto, any transfer and assignment of the Future Receivables is held not to be a sale but is instead held or deemed to create indebtedness or a security interest in the Future Receivables, then it is intended that:
