Specific Pledge; Required Collateral Amount Sample Clauses
The 'Specific Pledge; Required Collateral Amount' clause defines the obligation of a party to provide a particular asset or assets as collateral, specifying both the type and the minimum value required. In practice, this clause details what qualifies as acceptable collateral—such as cash, securities, or other assets—and sets a threshold that must be maintained, often subject to periodic review or adjustment. Its core function is to ensure that sufficient security is in place to protect the interests of the secured party, thereby mitigating credit risk and providing a clear standard for compliance.
Specific Pledge; Required Collateral Amount a. As security for all present and future Indebtedness, the Institution hereby assigns, transfers and pledges to FHLBank, and grants to FHLBank a security interest in, the following (1) Capital Stock; (2) all accounts and deposit accounts of the Institution held by FHLBank; (3) all property specified and described by the Institution from time to time on schedules or forms prescribed by FHLBank; (4) all property delivered from time to time by the Institution to FHLBank or FHLBank’s custodian; and (5) the proceeds of any of the foregoing.
b. The Institution shall at all times have granted FHLBank a security interest in an amount of Eligible Collateral that has a Lending Value at least equal to the Required Collateral Amount applicable to the Institution.
c. While the Institution may, except as provided below, retain the documents evidencing any Collateral it has pledged to FHLBank, it is specifically understood and agreed that the Institution holds such documents solely for the benefit, and subject to the direction and control, of FHLBank.
d. The Institution shall not assign, pledge, transfer, create any security interest in, sell or otherwise dispose of any Collateral without the prior written consent of FHLBank.
e. FHLBank may take such steps as it reasonably deems necessary to protect its security interest in Collateral including, without limitation, filing financing statements, requiring delivery, and requiring the pledging and/or perfection of additional collateral whether or not such additional collateral is Eligible Collateral.
Specific Pledge; Required Collateral Amount a. As security for all present and future indebtedness, the Institution hereby assigns, transfers and pledges to the Bank, and grants to the Bank a security interest in, the following: (1) all Capital Stock now or hereafter owned by the Institution; (2) all deposit accounts held by the Institution at the Bank; (3) all property specified and described by the Institution from time to time on schedules or forms prescribed by the Bank; (4) all property delivered from time to time by the Institution to the Bank or the Bank's custodian; and (5) the proceeds of any of the foregoing.
b. The institution shall at all times have granted the Bank a security interest in an amount of Eligible Collateral that has a Lending Value at least equal to the Required Collateral Amount applicable to the Institution.
c. While the Institution may, except as provided below, retain the documents evidencing any Collateral it has pledged to the Bank, it is specifically understood and agreed that the holding of such documents is solely for the benefit, and subject to the direction and control, of the Bank.
d. The Institution shall not assign, pledge, transfer, create any security interest in, sell or otherwise dispose of any Collateral without the prior written consent of the Bank.