Common use of Further Encumbrances Clause in Contracts

Further Encumbrances. Except to the extent of the Credit Limit (as that term is defined in the Loan Agreement) provided to Borrower by First Union National Bank which holds a security interest with Borrower as of the date of this Security Agreement, Borrower shall not, without Holder's consent (which consent shall not be unreasonably withheld) grant a security interest in any of the Collateral or execute any financing statements covering any of the Collateral in favor of any person until Borrower's Obligations secured under this Security Agreement shall have been repaid and performed in full. Notwithstanding the foregoing, Borrower may allow a financial institution to replace First Union National Bank and obtain, in place of said bank, the secured position held by First Union National Bank as of the date of this Agreement to the extent of the Credit Limit.