Bailee Letters Clause Samples

A Bailee Letter is a legal document used to establish the responsibilities and obligations of a third party (the bailee) who temporarily holds property on behalf of another party, typically in the context of secured lending or asset transfers. In practice, this letter outlines the terms under which the bailee must safeguard the property, restricts the bailee from releasing the property without the secured party’s consent, and may require the bailee to notify the secured party of any claims or actions affecting the property. The core function of a Bailee Letter is to protect the interests of the secured party by ensuring that the collateral remains under their control and is not disposed of or encumbered without their authorization, thereby mitigating the risk of loss or unauthorized transfer.
Bailee Letters. Each Pledgor shall use its commercially reasonable efforts to obtain as soon as practicable after the date hereof with respect to each location set forth on Schedule 2(e) to the Perfection Certificate a Bailee Letter, and use commercially reasonable efforts to obtain a Bailee Letter from all such bailees who from time to time have possession of the Pledged Collateral in the ordinary course of such Pledgor's business and if reasonably requested by the Collateral Agent. A Bailee Letter shall not be required if the value of the Pledged Collateral held by such bailee is less than $70,000, provided that the aggregate value of the Pledged Collateral held by all bailees who have not delivered a Bailee Letter is less than $500,000 in the aggregate. Notwithstanding the foregoing, the provisions set forth in this Section 3.04(g) with respect to Bailee Letters, shall not apply to consignment Inventory held by customers of any Pledgor on a trial or sample basis in the ordinary course of such Pledgor's business.
Bailee Letters. As of the date hereof, each Pledgor hereby represents and warrants that all locations of bailees at which Pledged Collateral valued at [*****] or more is located are set forth in Schedule I to this Agreement. Each Pledgor shall use commercially reasonable efforts to obtain as soon as practicable after the date hereof with respect to each location set forth in Schedule I to this location, a Bailee Letter and use commercially reasonable efforts to obtain a Bailee Letter from all such bailees, who from time to time have possession of any Pledge Collateral with a value in excess of [*****]. A Bailee Letter shall not be required if the value of the Pledged Collateral held by such bailee is less than [*****] or such location is a clinical trial site, provided that the aggregate value of Pledged Collateral held by all bailees who have not delivered a Bailee Letter (other than clinical trial sites) is less than $[*****] in the aggregate.
Bailee Letters. Bailee letters from each warehouseman or bailee having possession of any Inventory.
Bailee Letters. Licensee must instruct its warehouse lenders to place the name of the warehouse lender in the header of its bailee letters associated with ▇▇▇▇▇▇ Mae loans.
Bailee Letters. Borrower shall use its best efforts to obtain bailee letters, substantially in the form attached hereto as EXHIBIT W, or in such other form as is acceptable to the Agent in its sole discretion, from the bailee of each Warehouse prior to the date of entry of the Final Order. If a bailee letter is not obtained with respect to any warehouse prior to the date of the entry of the Final Order, the Lenders may create a reserve from the Borrowing Base to pay the rent obligations of Borrower or ACC Canada, as applicable, with respect to such warehouse.
Bailee Letters. Each Pledgor shall use its commercially reasonable efforts to obtain a Bailee Letter from all such bailees who from time to time have possession of any Pledged Collateral if reasonably requested by the Collateral Agent. A waiver of a bailee’s lien shall not be required if the value of the Pledged Collateral held by such bailee is less than $100,000 (provided however that a Bailee Letter shall not be required by any landlord of Real Property leased by any Pledgor).
Bailee Letters. Borrower acknowledges that it has failed to deliver to the Administrative Agent bailee letters substantially in the form attached as Exhibit O hereto from each of the bailees listed on Schedule I hereto and identified as missing a bailee letter. Borrower represents that Schedule I hereto is a complete list of all bailees holding its or its Subsidiaries (other than International Subsidiaries) Inventory as of the date hereof. Notwithstanding any prior course of performance or dealing by the Administrative Agent and the Borrower contrary to the Credit Agreement, beginning on October 31, 2003, any Inventory of the Borrower or its Subsidiaries (other than International Subsidiaries) that is stored with a bailee, warehouseman or similar party and not covered by an acknowledged bailee letter or otherwise meeting the requirements of the definition of Eligible Inventory in the Credit Agreement shall not be considered Eligible Inventory and shall be excluded from the calculation of the Borrowing Base.
Bailee Letters. (a) Each Grantor has obtained, or will obtain in accordance with Section 6.21 of the Framework Agreement, a landlord’s agreement, mortgagee agreement or bailee letter, as applicable, from the lessor of each leased property, mortgagee of owned property or bailee with respect to any warehouse, processor or converter facility or other location where Collateral is stored or located, which agreement or letter contains a waiver or subordination of all Liens or claims that the landlord, mortgagee or bailee may assert against the Collateral at that location and is otherwise satisfactory in form and substance to the ABL Loan Collateral Agent. (b) After the date of this Agreement, no real property or warehouse space will be leased by any Grantor and no inventory or other property of any Grantor will be shipped to a processor or converter or stored with a bailee under arrangements established after the date of this Agreement without the prior written consent of the ABL Loan Collateral Agent or unless and until a landlord agreement or mortgagee agreement or bailee letter, as appropriate, in form and substance reasonably satisfactory to the ABL Loan Collateral Agent, shall first have been obtained with respect to such location. (c) Each Grantor will timely and fully pay and perform its obligations under all leases and other agreements with respect to each leased location or public warehouse where any Collateral is or may be located.
Bailee Letters. To the extent any Mortgage File is currently sent out under cover of a Bailee Letter pursuant to the terms of the Custodial Agreement, the Custodian is hereby instructed to send within two (2) business days of the Assignment Effective Date revised Bailee Letters to the applicable parties notifying such parties that they are holding such Mortgage File on behalf of UBS 1285.
Bailee Letters. Agent shall have received a bailee letter, in form and substance satisfactory to the Agent from each of the following Approved Shippers: (i) OIA Global Logistics; (ii) C▇ ▇▇▇▇▇▇▇▇ International, Inc.; (iii) L▇▇▇▇▇ Group International, Ltd.; and (iv) Rapid Freight, Inc.