UNIMPAIRED SECURITY INTEREST Clause Samples
The Unimpaired Security Interest clause ensures that a lender’s or secured party’s interest in collateral remains fully protected and unaffected by any actions or agreements that might otherwise diminish its value or enforceability. In practice, this clause typically prohibits the borrower from taking steps such as granting additional liens, transferring assets, or entering into agreements that could compromise the original security interest. Its core function is to safeguard the lender’s priority and rights in the collateral, thereby reducing the risk of loss or dispute over the secured assets.
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UNIMPAIRED SECURITY INTEREST. Any and all of Collateral Agent’s rights with respect to the Pledged Collateral and the security interest granted hereunder shall continue unimpaired until the payment and performance in full of the Obligations, notwithstanding the release or substitution at any time(s) of any of the Note Collateral, or of any rights or interest therein, or any delay, extension of time, renewal, compromise or other indulgence granted by Collateral Agent in reference to any of the Obligations. Pledgor hereby waives all notice of any such delay, extension, release, substitution, renewals, compromise or other indulgence, and hereby consents to be bound thereby as fully and effectively as if Pledgor had expressly agreed thereto in advance.