Common use of Security Interest in the Equipment Clause in Contracts

Security Interest in the Equipment. Immediately prior to the sale, assignment and transfer thereof, each Loan shall be secured by a validly perfected first priority security interest (as defined in Section 1-201(37) of the UCC) in the Equipment (except to the extent the Equipment secures any receivable that is cross-collateralized with such Loan) in favor of the Seller as secured party or all necessary and appropriate actions have been commenced that would result in the valid perfection of a first priority security interest in the Equipment in favor of the Seller as secured party.

Security Interest in the Equipment. Immediately prior to the sale, assignment and transfer thereof, each such Loan shall be secured by a validly perfected first priority security interest (as defined in Section 1-201(37) of the UCC) in the Equipment (except to the extent the Equipment secures any receivable that is cross-collateralized with such Loan) in favor of the Seller GE Capital as secured party or all necessary and appropriate actions have been commenced that would result in the valid perfection of a first priority security interest in the Equipment in favor of the Seller GE Capital as secured party.