Special Collateral Provisions Sample Clauses
The "Special Collateral Provisions" clause defines specific terms and conditions that apply to collateral provided under an agreement. It typically outlines unique requirements or exceptions regarding the handling, use, or substitution of collateral, such as restrictions on the types of assets that can be pledged or special procedures for valuing or releasing collateral. This clause serves to address particular risks or operational needs related to collateral, ensuring that both parties have clear, customized rules that govern the security interests involved in the transaction.
Special Collateral Provisions. A. COMPROMISE AND COLLECTION. Debtor and Lender recognize that setoffs, counterclaims, defenses and other claims may be asserted by obligors with respect to certain of the Rights to Payment; that certain of the Rights to Payment may be or become uncollectible in whole or in part; and that the expense and probability of success of litigating a disputed Right to Payment may exceed the amount that reasonably may be expected to be recovered with respect to such Right to Payment. Debtor hereby authorizes Lender, after and during the continuance of an Event of Default, to compromise with the obligor, accept in full payment of any Right to Payment such amount as Lender shall negotiate with the obligor, or abandon any Right to Payment. Any such action by Lender shall be considered commercially reasonable so long as Lender acts in good faith based on information known to it at the time it takes any such action.
Special Collateral Provisions