Security Interest Transfers Sample Clauses
Security Interest Transfers. (a) The Borrowers shall not create, incur, assume or suffer to exist any Security Interest on any of the Collateral except Permitted Liens and Security Interests in favor of the Lender created by the Loan Documents. The Borrower shall not transfer its interest in any Collateral, except as specifically permitted by the Loan Documents.
(b) Without the prior written consent of the Lender, which consent will not be unreasonably withheld, the Borrowers shall not, and shall not permit any Subsidiary (other than a Borrower) to, create, incur, assume or suffer to exist any Security Interest on any of its property, real or personal, except (i) Security Interests in favor of the Lender created pursuant to the Loan Documents; (ii) Security Interests in existence as of the date of this Agreement listed on Schedule 7.9; (iii) Security Interests securing non-recourse Indebtedness or recourse Indebtedness in an amount of up to $1,000,000 in any single transaction, in each case incurred in the ordinary course of business provided that such Security Interests are limited only to those Leases and the goods which are the subject of such Leases as to which the recourse of the applicable lender is limited; and (iv) Security Interests for current taxes and assessments which are not yet due and payable.
Security Interest Transfers. Notwithstanding anything to the contrary contained herein, any Party has the right to grant a Security Interest, in connection with any bona fide financing transaction, in any right or obligation such Party may have arising out of or related to this Agreement, the Company, or such Party’s Partnership Interest, or any interest herein or therein, and make a Transfer in connection with any such Security Interest; provided, however, that (i) no such Security Interest may be created in violation of Sections 3.4(a)(i) or 3.4(b)(i), (ii) the Company must be notified of any such Security Interest promptly after the creation thereof, and (iii) except as set forth to the contrary in Section 3.4(j), any Foreclosure Transfer with respect to a Security Interest in a Partnership Interest shall entitle a non-Partner that forecloses on the underlying Security Interest only to become a Transferee and not a Substituted Partner. If such foreclosing Person is already a Partner, such Partner’s status as a Partner will remain unchanged but its Partnership Interest will be increased by the Partnership Interest acquired through the Foreclosure Transfer.