Valid and Continuing Security Interest Clause Samples
The 'Valid and Continuing Security Interest' clause establishes that the security interest granted by a borrower or debtor to a lender or secured party remains legally effective and enforceable throughout the duration of the agreement. In practice, this means that the collateral provided as security for a loan or obligation continues to secure the lender’s interests until the debt is fully repaid or otherwise discharged, regardless of changes in circumstances. This clause ensures that the lender’s rights to the collateral are protected at all times, thereby reducing the risk of losing security due to technicalities or changes in the borrower's situation.
Valid and Continuing Security Interest. This Indenture creates a valid and continuing security interest (as defined in the applicable Uniform Commercial Code (“UCC”) in effect in the State of Delaware) in the Financed Student Loans and all other assets constituting part of the Indenture Trust Estate in favor of the Indenture Trustee, which security interest is prior to all other liens, charges, security interests, mortgages or other encumbrances, and is enforceable as such as against creditors of and purchasers from the Issuer.
Valid and Continuing Security Interest. The security interest granted pursuant to this Agreement will constitute a valid, continuing and, upon the filing of appropriate financing statements, first priority perfected security interest (except as to the equipment identified on the already-filed financing statements attached to Schedule 1 hereto) in favor of the Lender in the Collateral.
Valid and Continuing Security Interest. The security interest granted pursuant to this Agreement will constitute a valid, continuing and, upon the filing of appropriate registration documentation at HM Land Registry and with the Registrar of Companies, first priority perfected security interest in favor of the Lender in the Collateral.