Third Party Possession Clause Samples
The Third Party Possession clause defines the rules and responsibilities when goods or property are held by a party other than the buyer or seller, such as a warehouse or logistics provider. Typically, this clause outlines how possession is established, who bears the risk of loss or damage while the goods are with the third party, and what documentation is required to confirm possession. Its core function is to clarify ownership and risk allocation during periods when neither contracting party has direct control over the goods, thereby reducing disputes and ensuring smooth transitions in the supply chain.
Third Party Possession. Borrowers represent and warrant to Lender that they do not have any goods, documents of title or other collateral in the custody, control or possession of a third party as of the date hereof, except for goods located in the United States in transit to a location of a Borrower permitted herein in the ordinary course of business of such Borrower in the possession of the carrier transporting such goods. In the event that any goods, documents of title or other collateral are at any time after the date hereof in the custody, control or possession of any other person or such carriers, Borrowers shall promptly notify Lender thereof in writing; provided that, as to such carriers, Borrowers need only notify Lender on an aggregate basis. Promptly upon Lender's request, Borrowers shall deliver a Collateral Access Agreement in form and substance satisfactory to Lender, duly authorized, executed and delivered by any such person and Borrower.
Third Party Possession. To the extent Executive is unable to provide certain Company Information, the Executive shall at the time of execution of this Agreement provide an itemized list, attached as Schedule 1, of all such Company Information, the name and contact information for the party in possession of such information, and the reason Executive is unable to regain possession from the third party.
Third Party Possession or Control If any Collateral is at any time in the possession or control of any warehouseman, bailee, agent or independent contractor, such Grantor shall provide prompt written notice to the Purchaser Agent and notify such warehouseman, bailee, agent or independent contractor of the Purchaser Agent’s security interest in such Collateral. Upon the Purchaser Agent’s request and option, such Grantor shall (i) instruct any such warehouseman, bailee, agent or independent contractor to hold all such Collateral for the Purchaser Agent’s account subject to such Grantor’s instructions, or, if an Event of Default shall have occurred, subject to the Purchaser Agent’s instructions and (ii) cause any such warehouseman, bailee, agent or independent contractor to enter into a collateral access agreement in form and substance satisfactory to the Purchaser Agent.