Administrative Agent’s Agreements About Control Clause Samples
The "Administrative Agent’s Agreements About Control" clause defines the responsibilities and authority of the administrative agent in managing and exercising control over certain assets or accounts on behalf of the lending group. Typically, this clause outlines the circumstances under which the agent may take control actions, such as perfecting security interests or directing the disposition of collateral, and may specify the procedures for giving or revoking such control. Its core practical function is to ensure that the administrative agent has clear authority to act in the interests of the lenders, thereby facilitating the enforcement of security interests and reducing ambiguity in the management of collateral.
Administrative Agent’s Agreements About Control. For the Revolving Facility Collection Account, the Administrative Agent agrees that:
(i) securities, instruments, cash, money or other property delivered to it under the Credit and Security Agreement or this Agreement and investments of funds held in the Revolving Facility Collection Account will be promptly credited to the Revolving Facility Collection Account;
(ii) securities, instruments, cash, money or other property credited to the Revolving Facility Collection Account will be treated as a “financial asset” within the meaning of Section 8-102(a)(9) of the UCC;
(iii) until the Revolving Facility Balance has been paid in full, the Revolving Facility has been terminated and the Revolving Facility Collection Account has been released from the Lien Granted under Section 3.2 of the Credit and Security Agreement, it will comply with “entitlement orders” (as defined in Section 8-102(a)(8) of the UCC) originated by the Collateral Agent, as secured party, without further consent of the Borrowers or any other Person; and
(iv) the law of the State of New York will govern the Revolving Facility Collection Account.