Discharge of Security Interests Clause Samples

The Discharge of Security Interests clause outlines the process by which any security interests or liens held over certain assets are released once specific obligations, such as repayment of a loan, have been fulfilled. In practice, this clause typically requires the secured party to take formal steps, such as filing release documents or providing written confirmation, to remove their claim over the collateral. Its core function is to ensure that once debts are settled, the borrower regains clear ownership of their assets, thereby preventing ongoing encumbrances and facilitating future transactions involving those assets.
Discharge of Security Interests. Upon payment by the Optionor to the Creditor of the Settlement Payment, the Creditor will promptly, but in any event, no later than two (2) Business Days following payment of the Settlement Payment, discharge all security interest it has in the assets and property of the Optionor and its subsidiaries, and the Optionor and the Creditor agree that until such time as the Settlement Payment is paid by the Optionee in full, the Creditor will remain the senior secured creditor of the Optionor. Upon such discharge, the Creditor shall provide the Optionor and the Optionee with evidence and confirmation in writing of such discharge.
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Discharge of Security Interests. Except for the lien of the Statutory Mortgage, this Deed and Permitted Liens, Shipowner will not create or suffer to be continued any Security Interest on the Vessel and will cause the Vessel to be released or discharged from each such Security Interest. If the Vessel is attached, levied upon, or taken into custody or detained by any proceeding in any court or tribunal or by any government or other authority, Shipowner will promptly notify Mortgagee thereof and will, within twenty-one (21) days of said event, cause the Vessel to be released and all such Security Interests to be discharged. Notwithstanding the above, no Security Interest need be discharged if (i) Shipowner is contesting such Security Interest in good faith through appropriate proceedings and (ii) the non-discharge thereof does not in any way hinder the operation or trading of the Vessel or impair Shipowner's ownership of the Vessel or the rights of Mortgagee under the Statutory Mortgage and this Deed.
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Discharge of Security Interests. (a) Except for the lien of this Mortgage and Permitted Liens, Shipowner will not create or suffer to be continued any Security Interest on the Vessel and in due course and in any event within thirty (30) days after the same becomes due and payable will pay or cause to be discharged all claims or demands which, if not paid or discharged, might result in the creation of a Security Interest on the Vessel and will cause the Vessel to be released or discharged from each such Security Interest. Similarly, if a Security Interest is filed against the Vessel or if the Vessel is otherwise attached, levied upon, or taken into custody or detained by any proceeding in any court or tribunal or by any government or other authority, Shipowner will promptly notify Mortgagee thereof and will, within fourteen (14) days of said event, cause the Vessel to be released and all Security Interests thereon other than that of this Mortgage and the Permitted Liens, to be discharged. Notwithstanding the above, no Security Interest need be discharged if (i) Shipowner shall contest such Security Interest in good faith through appropriate proceedings, (ii) Shipowner sets aside with Mortgagee adequate reserves reasonably acceptable to Mortgagee in accordance with generally accepted accounting principles, or otherwise obtains a protection and indemnity club letter of assurance reasonably acceptable to Mortgagee, with respect to any such Security Interest so contested, and (iii) the non-discharge thereof does not in any way hinder the operation or trading of the Vessel or impair Shipowner's ownership of the Vessel or the rights of Mortgagee under this Mortgage. (b) As used in this Mortgage, "Permitted Liens" means: (i) liens for crew wages (including wages of the Master to the extent provided by 46 U.S.C. ss. 11112) accrued for not more than thirty (30) days; (ii) liens for taxes, assessments, governmental charges, fines and penalties not at the time delinquent; (iii) liens incurred in the ordinary course of trading the Vessel not exceeding $1,500,000 at any time outstanding; (iv) liens created by or through Mortgagee prior to the date of this Mortgage but only until such time as Mortgagee has discharged same;
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Discharge of Security Interests. Seller shall provide evidence, satisfactory to Purchaser, that there shall be no lien or Encumbrances on any of the Transferred Assets.
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Discharge of Security Interests 
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Related to Discharge of Security Interests

  • Creation, Perfection and Priority of Security Interests The representations and warranties regarding creation, perfection and priority of security interests in the Purchased Property, which are attached to this Agreement as Appendix B, are true and correct to the extent that they are applicable.

  • Impairment of Security Interests Take or omit to take any action, which might or would have the result of materially impairing the security interests in favor of the Administrative Agent with respect to the Collateral or grant to any Person (other than the Administrative Agent for the benefit of itself and the Lenders pursuant to the Security Documents) any interest whatsoever in the Collateral, except for Liens permitted under Section 11.2 and asset sales permitted under Section 11.5.

  • Release of Security Interests Without limiting the generality of the foregoing and except as otherwise provided in this Indenture, each Guarantor hereby consents and agrees, to the fullest extent permitted by applicable law, that the rights of the Trustee hereunder, and the liability of the Guarantors hereunder, shall not be affected by any and all releases for any purpose of any collateral, if any, from the Liens and security interests created by any collateral document and that this Guarantee shall continue to be effective or be reinstated, as the case may be, if at any time any payment of any of the Indenture Obligations is rescinded or must otherwise be returned by the Trustee upon the insolvency, bankruptcy or reorganization of the Company or otherwise, all as though such payment had not been made.

  • Perfection of Security Interests Each Borrower and Guarantor irrevocably and unconditionally authorizes Agent (or its agent) to file at any time and from time to time such financing statements with respect to the Collateral naming Agent or its designee as the secured party and such Borrower or Guarantor as debtor, as Agent may require, and including any other information with respect to such Borrower or Guarantor or otherwise required by part 5 of Article 9 of the Uniform Commercial Code of such jurisdiction as Agent may determine, together with any amendment and continuations with respect thereto, which authorization shall apply to all financing statements filed on, prior to or after the date hereof. Each Borrower and Guarantor hereby ratifies and approves all financing statements naming Agent or its designee as secured party and such Borrower or Guarantor, as the case may be, as debtor with respect to the Collateral (and any amendments with respect to such financing statements) filed by or on behalf of Agent prior to the date hereof and ratifies and confirms the authorization of Agent to file such financing statements (and amendments, if any). Each Borrower and Guarantor hereby authorizes Agent to adopt on behalf of such Borrower and Guarantor any symbol required for authenticating any electronic filing. In the event that the description of the collateral in any financing statement naming Agent or its designee as the secured party and any Borrower or Guarantor as debtor includes assets and properties of such Borrower or Guarantor that do not at any time constitute Collateral, whether hereunder, under any of the other Financing Agreements or otherwise, the filing of such financing statement shall nonetheless be deemed authorized by such Borrower or Guarantor to the extent of the Collateral included in such description and it shall not render the financing statement ineffective as to any of the Collateral or otherwise affect the financing statement as it applies to any of the Collateral. In no event shall any Borrower or Guarantor at any time file, or permit or cause to be filed, any correction statement or termination statement with respect to any financing statement (or amendment or continuation with respect thereto) naming Agent or its designee as secured party and such Borrower or Guarantor as debtor.

  • Priority of Security Interest Borrower represents, warrants, and covenants that the security interest granted herein is and shall at all times continue to be a first priority perfected security interest in the Collateral (subject only to Permitted Liens that are permitted pursuant to the terms of this Agreement to have superior priority to Bank’s Lien under this Agreement). If Borrower shall acquire a commercial tort claim, Borrower shall promptly notify Bank in a writing signed by Borrower of the general details thereof and grant to Bank in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and substance reasonably satisfactory to Bank.