Common use of Collateral in the Possession of a Third Party Clause in Contracts

Collateral in the Possession of a Third Party. If any goods constituting Collateral at any time are in the possession of a third party, the Debtor shall promptly notify the Secured Party thereof and, if requested by the Secured Party, shall promptly obtain an acknowledgement from such person, in form and substance satisfactory to the Secured Party, that such person holds such Collateral for the benefit of the Secured Party and shall act upon the instructions of the Secured Party, without the further consent of the Debtor.

Collateral in the Possession of a Third Party. If any goods constituting Collateral at any time are in the possession of a third party, the Debtor each Loan Party shall promptly notify the Secured Party Lender thereof and, if requested by the Secured PartyLender, shall promptly use its commercially reasonable efforts to obtain an acknowledgement from such person, in form and substance satisfactory to the Secured PartyLender, that such person holds such Collateral for the benefit of the Secured Party Lender and shall act upon the instructions of the Secured PartyLender, without the further consent of the DebtorLoan Parties.