Constructive Possession of Collateral Clause Samples

The Constructive Possession of Collateral clause establishes that a party is deemed to have control or possession over collateral, even if they do not have physical custody of it. This typically applies in secured transactions where the collateral may be held by a third party, such as a warehouse or a bank, but is considered under the control of the secured party through legal arrangements or documentation. The core function of this clause is to ensure that the secured party's interest in the collateral is recognized and protected, even without direct physical possession, thereby facilitating the enforcement of security interests and reducing the risk of disputes over control.
Constructive Possession of Collateral. The possession by a Deposit Taker of any deposit accounts, money, instruments, chattel paper or other property constituting Collateral or evidencing Collateral shall be deemed to be possession by Agent or a person designated by Agent, for purposes of perfecting the security interest granted to Agent hereunder pursuant to the UCC or other Applicable Law; and notifications to a Deposit Taker by other Persons holding any such property, and Acknowledgments, receipts or confirmations from any such Persons delivered to a Deposit Taker, shall be deemed notifications to, or Acknowledgments, receipts or confirmations from, financial intermediaries, bailees or agents (as applicable) of such Deposit Taker for the benefit of Agent for the purposes of perfecting such security interests under Applicable Law.
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Constructive Possession of Collateral. The possession by a Deposit Taker of any money, instruments, chattel paper, financial assets or other property constituting Collateral or evidencing Collateral shall be deemed to be possession by BTMUCLF or a person designated by BTMUCLF, for purposes of perfecting the security interest granted to BTMUCLF hereunder pursuant to the UCC or other Applicable Law; and notifications to a Deposit Taker by other Persons holding any such property, and acknowledgments, receipts or confirmations from any such Persons delivered to a Deposit Taker, and control agreements made by any such Person with Deposit Taker with respect to any such property, shall be deemed notifications to, or acknowledgments, receipts or confirmations from, or control agreements with, financial intermediaries, bailees or agents (as applicable) of such Deposit Taker for the benefit of BTMUCLF for the purposes of perfecting such security interests under Applicable Law. However, nothing in this subparagraph will be construed to permit or authorize any replacement of Cash Collateral required by this Agreement with other types of Collateral or any substitution of other types of Collateral for Cash Collateral hereunder.
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Constructive Possession of Collateral. 10 Section 4.8 Attempted Setoff by Deposit Takers.....................................10 Section 4.9 Deposit Taker Losses...................................................10 Section 4.10 Losses Resulting from Failure of Deposit Taker to Comply with this Agreement....................................................................11 ARTICLE V
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Constructive Possession of Collateral. 11 4.8 Attempted Setoff by Deposit Takers...........................................11 4.9
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Constructive Possession of Collateral. 10 Section 4.8 Attempted Setoff by Deposit Takers........................................ 10 Section 4.9 Deposit Taker Losses...................................................... 10 Section 4.10 Losses Resulting from Failure of Deposit Taker to Comply with this Agreement............................................................. 11 ARTICLE V DELIVERY AND MAINTENANCE OF CASH COLLATERAL........................................ 11 Section 5.1 Delivery of Funds by NAI.................................................. 11 Section 5.2 Transition Account........................................................ 11 Section 5.3 Allocation of Cash Collateral Among Deposit Takers........................ 11 Section 5.4 Issuance and Redemption of Certificates of Deposit........................ 12 Section 5.5 Status of the Accounts Under the Reserve Requirement Regulations......
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Constructive Possession of Collateral. The possession by a Deposit Taker of any deposit accounts, money, instruments, chattel paper or other property constituting Collateral or evidencing Collateral shall be deemed to be possession by Agent or a person designated by Agent, for purposes of perfecting the security interest
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Related to Constructive Possession of Collateral

  • Possession of Collateral Agent and Secured Parties appoint each Lender as agent (for the benefit of Secured Parties) for the purpose of perfecting Liens in any Collateral held or controlled by such Lender, to the extent such Liens are perfected by possession or control. If any Lender obtains possession or control of any Collateral, it shall notify Agent thereof and, promptly upon Agent’s request, deliver such Collateral to Agent or otherwise deal with it in accordance with Agent’s instructions.

  • Condition of Collateral Secured Party has no obligation to repair, clean-up or otherwise prepare the Collateral for sale.

  • Possession and Use of Collateral Subject to the provisions of the Security Documents, the Issuer and the Guarantors shall have the right to remain in possession and retain exclusive control of and to exercise all rights with respect to the Collateral (other than monies or U.S. government obligations deposited pursuant to Article VIII, and other than as set forth in the Security Documents and this Indenture), to operate, manage, develop, lease, use, consume and enjoy the Collateral (other than monies and U.S. government obligations deposited pursuant to Article VIII and other than as set forth in the Security Documents and this Indenture), to alter or repair any Collateral so long as such alterations and repairs do not impair the creation or perfection of the Lien of the Security Documents thereon, and to collect, receive, use, invest and dispose of the reversions, remainders, interest, rents, lease payments, issues, profits, revenues, proceeds and other income thereof.

  • Inspection of Collateral Lender and Lender's designated representatives and agents shall have the right at all reasonable times to examine and inspect the Collateral wherever located.

  • Retention of Collateral In addition to the rights and remedies hereunder, the Administrative Agent may, in compliance with Sections 9-620 and 9-621 of the UCC or otherwise complying with the requirements of applicable Law of the relevant jurisdiction, accept or retain the Collateral in satisfaction of the Secured Obligations. Unless and until the Administrative Agent shall have provided such notices, however, the Administrative Agent shall not be deemed to have retained any Collateral in satisfaction of any Secured Obligations for any reason.