Common use of Special Collateral Covenants Clause in Contracts

Special Collateral Covenants. (a) Until the occurrence of any Event of Default, Borrower shall remain in possession of the Collateral at the location(s) specified on the Perfection Certificate; except that Agent, on behalf of itself and Lenders, shall have the right to possess (i) any chattel paper or instrument that constitutes a part of the Collateral, and (ii) any other Collateral in which Agent’s security interest (on behalf of itself and Lenders) may be perfected only by possession. Agent may inspect (and representatives of any Lender may accompany Agent on any such inspection) any of the Collateral during normal business hours, and in the absence of a Default or an Event of Default, with reasonable frequency and after giving Borrower reasonable prior notice. If Agent asks, Borrower will promptly notify Agent in writing of the location of any Collateral.

Special Collateral Covenants. (a) Until the occurrence of any Event of Default, Borrower each Loan Party shall remain in possession of the its respective Collateral at the location(s) locations specified on the Perfection Certificate; except that Agent, on behalf of itself and Lenders, shall have the right to possess (i) any chattel paper or instrument that constitutes a part of the Collateral, and (ii) any other Collateral in which Agent’s security interest (on behalf of itself and Lenders) may be perfected only by possession. Agent may inspect (and representatives of any Lender may accompany Agent on any such inspection) any of the Collateral during normal business hours, and in the absence of a Default or an Event of Default, with reasonable frequency and after giving Borrower reasonable prior notice. If Agent asks, Borrower each Loan Party will promptly notify Agent in writing of the location of any its respective Collateral.