SECURITY INTEREST; UCC-1 FINANCING STATEMENTS Sample Clauses
The 'Security Interest; UCC-1 Financing Statements' clause establishes the lender's legal right to claim specific collateral if the borrower defaults on their obligations. In practice, this clause authorizes the lender to file a UCC-1 financing statement, which is a public notice of the lender's security interest in the borrower's assets, such as equipment, inventory, or receivables. By formalizing and publicizing the lender's claim, this clause ensures the lender's priority over other creditors and protects their ability to recover the loaned amount in case of default.
SECURITY INTEREST; UCC-1 FINANCING STATEMENTS. 7.1 In consideration of the making of the Loans by Lender, Borrower hereby grants to Lender, and Lender shall have and hold as security for the repayment of each of the Loans and all other Liabilities of Borrower owing to Lender, a continuing security interest in and to, and Borrower collaterally assigns to Lender, all of Borrower’s property and assets, whether real or personal, whether granted directly or indirectly, whether granted now or in the future, wherever located and whether now owned or hereafter acquired (collectively, the “Collateral”), including, without limitation, the following:
(a) all Inventory and goods, as defined in Article 9 of the UCC, including, without limitation, merchandise, raw materials and work in process, finished goods, and other tangible personal property now owned or hereafter acquired and held for sale or lease or furnished or to be furnished under contracts of service or used or consumed in Borrower’s business; and
(b) all Accounts, instruments (including promissory notes), documents, chattel paper (whether tangible or electronic), contracts, contract rights, notes, bills, drafts, acceptances, instruments, documents and general intangibles (including payment intangibles), as each is defined in Article 9 of the UCC, including, without limitation, work-in-process/unbilled accounts, registered and unregistered tradenames, copyrights, customer lists, goodwill, computer programs, computer records, computer software, computer data, trade secrets, trademarks, patents, ledger sheets, files, records, data processing records relating to any accounts and all tax refunds of every kind and nature to which Borrower is now or hereafter may become entitled to, no matter how arising, deposit accounts (whether maintained with Lender or another bank, trust company, investment firm or fund or any similar institution or organization), letter of credit rights (whether or not the letter of credit is evidenced by a writing), securities, security entitlements, security accounts, investment property, supporting obligations, choses in action, commercial tort claims, and all other debts, obligations and liabilities in whatever form, owing to Borrower from any person, firm or corporation or any other legal entity, whether now existing or hereafter arising, now or hereafter received by or belonging or owing to Borrower, for goods sold by it or for services rendered by it, or however otherwise the same may have been established or created, all guarante...