Lien and Right of Sale over Securities and Other Property Clause Samples

The 'Lien and Right of Sale over Securities and Other Property' clause grants a party, typically a financial institution or broker, the legal right to retain possession of a client's securities or other assets as security for any outstanding obligations or debts. In practice, if the client fails to meet payment or margin requirements, the institution can hold onto or even sell the client's assets to recover the owed amounts. This clause ensures the institution has a clear and enforceable method to secure repayment, thereby reducing credit risk and providing a mechanism for swift resolution in the event of default.
Lien and Right of Sale over Securities and Other Property. USL shall have a lien over any and all Securities, acquired on the Client’s behalf, or in which the Client has an interest (either individually or jointly with other) which are held for the Client’s Account and all cash and other property at any time held by USL on the Client’s behalf, all of which shall be held by USL as a continuing security for the payment and/or discharge of the Client’s obligations to USL arising from the business of dealing in Securities and such security shall include all dividends or interest paid or payable after the date hereof on such Securities and all stocks, shares (and the dividends or interest thereon) rights, monies or property accruing or offered at any time by way of redemption, bonus, preference, option or otherwise to or in respect of such Securities. Upon default by the Client in payment on demand or on the due date therefor of any of the Client’s indebtedness to USL or any other default by the Client hereunder, USL shall have the right, acting in good faith, to sell or otherwise dispose the whole or any part of such security as when and how and at such price and on such terms as USL shall think fit and to apply the net proceeds of such sale or disposition and any moneys for the time being in USL’s hands in or towards discharge of the Client’s indebtedness (whether actual or contingent) to USL; and such security shall be in addition to and shall not prejudice or be prejudiced by any right of set-off or other security which USL may hold at any time for the Client’s indebtedness to USL or by any release modification or abstention from enforcement thereof or other dealing therewith.
View SourceView Similar (7)
Lien and Right of Sale over Securities and Other Property uSMART SG shall have a lien over any and all Securities, acquired on the Client’s behalf, or in which the Client has an interest (either individually or jointly with other) which are held for the Client’s Account and all cash and other property at any time held by uSMART SG on the Client’s behalf, all of which shall be held by uSMART SG as a continuing security for the payment and/or discharge of the Client’s obligations to uSMART SG arising from the business of dealing in Securities and such security shall include, in respect of such Securities: 6.6.1 all present and future shares in corporations; 6.6.2 all rights relating to any of the shares described in paragraph 6.6.1 above which are deposited with or registered in the name of any depositary, custodian, nominee, clearing house or system, investment manager, chargee or other similar person or their nominee, in each case whether or not on a fungible basis (including any rights against any such person); 6.6.3 all warrants, options and other rights to subscribe for, purchase or otherwise acquire any of the shares described in paragraph 6.6.1above; and 6.6.4 all other rights attaching or relating to any of the shares described in paragraph 6.6.1above, and all cash or other securities or investments in the future deriving from any of those shares or such rights, in each case now or in the future owned by the Client or (to the extent of its interest) in which it now or in the future has an interest.
View SourceView Similar (2)
Lien and Right of Sale over Securities and Other Property. GTJAS shall have a lien over any and all Securities, acquired on the Client’s behalf, or in which the Client has an interest (either individually or jointly with other) which are held for the Client’s Account and all cash and other property at any time held by GTJAS on the Client’s behalf, all of which shall be held by GTJAS as a continuing security, on trust for itself and any other member of the GTJA Group, for the payment and/or discharge of the Client’s obligations to GTJAS or any other member of GTJA Group under this Agreement or any agreement with any other member of GTJA Group and such security shall include all dividends or interest paid or payable after the date hereof on such Securities and all stocks, shares (and the dividends or interest thereon) rights, monies or property accruing or offered at any time by way of redemption, bonus, preference, option or otherwise to or in respect of such Securities. Upon default by the Client in payment on demand or on the due date therefor of any of the Client’s indebtedness to GTJAS or any other member of GTJA Group or any other default by the Client hereunder or any agreement with any other member of the GTJA Group, GTJAS shall have the right, acting in good faith, to sell or otherwise dispose the whole or any part of such security as when and how and at such price and on such terms as GTJAS shall think fit and to apply the net proceeds of such sale or disposition and any moneys for the time being in GTJAS’s hands in or towards discharge of the Client’s indebtedness (whether actual or contingent) to GTJAS or any other member of GTJA Group; and such security shall be in addition to and shall not prejudice or be prejudiced by any right of set-off or other security which GTJAS or any other member of GTJA Group may hold at any time for the Client’s indebtedness to GTJAS or any other member of GTJA Group or by any release modification or abstention from enforcement thereof or other dealing therewith.
View Source

Related to Lien and Right of Sale over Securities and Other Property

  • Contracts and Other Collateral The Company shall perform all of its obligations under or with respect to each instrument, receivable, contract and other intangible included in the Pledged Property to which the Company is now or hereafter will be party on a timely basis and in the manner therein required, including, without limitation, this Agreement.

  • Equipment and Other Tangible Property The Company or one of its Subsidiaries owns and has good title to, and has the legal and beneficial ownership of or a valid leasehold interest in or right to use by license or otherwise, all material machinery, equipment and other tangible property reflected on the books of the Company and its Subsidiaries as owned by the Company or one of its Subsidiaries, free and clear of all Liens other than Permitted Liens. All material personal property and leased personal property assets of the Company and its Subsidiaries are structurally sound and in good operating condition and repair (ordinary wear and tear expected) and are suitable for their present use.

  • Transfers and Other Liens; Additional Shares The Pledgor agrees that he will not (i) sell or otherwise dispose of, or grant any option with respect to, any of the Pledged Collateral, or (ii) create or permit to exist any lien, security interest, or other charge or encumbrance upon or with respect to any of the Pledged Collateral, except for the security interest under this Agreement.

  • Dividends and Other Distributions in Respect of the Escrow Shares During the Escrow Period, all dividends payable in cash with respect to the Escrow Shares shall be paid to the Initial Stockholders, but all dividends payable in stock or other non-cash property (“Non-Cash Dividends”) shall be delivered to the Escrow Agent to hold in accordance with the terms hereof. As used herein, the term “Escrow Shares” shall be deemed to include the Non-Cash Dividends distributed thereon, if any.

  • Spin Offs and Other Distributed Property (i) If the Company distributes shares of its Capital Stock, evidences of its indebtedness or other assets or property of the Company, or rights, options or warrants to acquire Capital Stock of the Company or other securities, to all or substantially all holders of the Common Stock, excluding: (A) dividends, distributions, rights, options or warrants for which an adjustment was effected pursuant to Section 8.05(a) or 8.05(b), as applicable; (B) dividends or distributions paid exclusively in cash for which an adjustment was effected pursuant to Section 8.05(d); (C) Spin-Offs for which the provisions described in Section 8.05(c)(ii) will apply; and (D) an issuance solely pursuant to a Common Stock Change Event, as to which the provisions set forth in Section 8.08(a) will apply, then the Conversion Rate will be increased based on the following formula: where: CR0 = the Conversion Rate in effect immediately prior to the Open of Business on the Ex-Dividend Date for such distribution; CR1 = the Conversion Rate in effect immediately after the Open of Business on such Ex-Dividend Date; SP0 = the average of the Last Reported Sale Prices per share of the Common Stock over the ten (10) consecutive Trading Day period ending on, and including, the Trading Day immediately preceding the Ex-Dividend Date for such distribution; and FMV = the fair market value (as determined by the Board of Directors) of the shares of Capital Stock, evidences of indebtedness, assets, property, rights, options or warrants distributed with respect to each outstanding share of Common Stock on the Ex-Dividend Date for such distribution. Such adjustment shall become effective immediately after the Open of Business on such Ex-Dividend Date. Notwithstanding the foregoing, if “FMV” (as defined above) is equal to or greater than the “SP0” (as defined above), in lieu of the foregoing increase, the Holder will receive, for each $1,000 principal amount of this Note outstanding on the record date for the distribution, at the same time and upon the same terms as holders of the Common Stock, the amount and kind of shares of Capital Stock, evidences of indebtedness, assets or property, rights, options or warrants or other securities that the Holder would have received if the Holder had owned a number of shares of Common Stock equal to the Conversion Rate in effect on the record date for such distribution (or in the case of a principal amount or portion of a principal amount that is not a multiple of $1,000, an equivalent pro rata amount). If any distribution of the type described in this Section 8.05(c)(i) is not so paid or made, or if any rights, options or warrants are not exercised before their expiration date, the Conversion Rate will be readjusted to be the Conversion Rate that would then be in effect if such distribution had not been declared. (ii) With respect to an adjustment pursuant to this Section 8.05(c) where there has been a payment of a dividend or other distribution on the Common Stock of shares of Capital Stock of any class or series, or similar equity interest, of or relating to an Affiliate, a Subsidiary or other business unit of the Company, and such Capital Stock or similar equity interest is listed or quoted (or will be listed or quoted upon the consummation of the transaction) on a national securities exchange or a reasonably comparable non-U.S. equivalent (a “Spin-Off”), but excluding an issuance solely pursuant to a Common Stock Change Event as to which the provisions described in Section 8.08(a) apply, the Conversion Rate will be increased based on the following formula: where: CR0 = the Conversion Rate in effect immediately prior to the Open of Business on the Ex-Dividend Date for such Spin-Off; CR1 = the Conversion Rate in effect immediately after the Open of Business on such Ex-Dividend Date; FMV0 = the average of the Last Reported Sale Prices of the Capital Stock or similar equity interest distributed to holders of the Common Stock applicable to one share of Common Stock (determined for purposes of the definition of Last Reported Sale Price as if such Capital Stock or similar equity interest were the Common Stock) over the first ten (10) consecutive Trading Day period after, and including, the Ex-Dividend Date of the Spin-Off (the “Valuation Period”); and MP0 = the average of the Last Reported Sale Prices per share of the Common Stock over the Valuation Period. Such adjustment shall become effective immediately after the Open of Business on such Ex-Dividend Date. The adjustment to the Conversion Rate under this Section 8.05(c)(ii) will be calculated as of the Close of Business on the last Trading Day of the Valuation Period but will be given effect as of immediately after the Open of Business on the Ex-Dividend Date of the Spin-Off. Notwithstanding anything to the contrary herein or in this Note, if necessary, the Company shall delay the settlement of any conversion of this Note where the Conversion Date occurs during the Valuation Period until the third (3rd) Business Day after the last day of the Valuation Period. If any distribution of the type described in this Section 8.05(c)(ii) is declared but not so made, the Conversion Rate shall be immediately readjusted, effective as of the date the Board of Directors determines not to make such distribution, to the Conversion Rate that would then be in effect if such distribution had not been declared.