Maintenance and Use of Collateral Sample Clauses
The "Maintenance and Use of Collateral" clause defines the obligations of a party to properly care for, preserve, and use any collateral provided under an agreement. Typically, this clause requires the party holding the collateral to keep it in good condition, avoid misuse or unauthorized disposal, and sometimes to insure it against loss or damage. For example, if equipment is pledged as collateral, the borrower must maintain it and not sell or lease it without consent. The core function of this clause is to protect the value of the collateral, ensuring it remains available and sufficient to secure the underlying obligation, thereby reducing the lender's risk.
Maintenance and Use of Collateral. ▇▇▇▇ shall not permit the Collateral to be used in violation of any of the Guaranty Agreements or this Agreement.
Maintenance and Use of Collateral. The Company, at the Company's expense, shall keep the Collateral consisting of tangible personal property in good order and condition and shall make all necessary or appropriate repairs, replacements and renewals thereof, interior, exterior, structural and non-structural, ordinary and extraordinary, foreseen and unforeseen. The Company shall not do, or permit to be done, any act or thing which might materially impair the value or usefulness of the Collateral or any part thereof, shall not commit or permit any waste of the Collateral or any part thereof, and shall not permit any unlawful occupation, business or trade involving the Collateral to be conducted.
Maintenance and Use of Collateral. Borrower will maintain the Collateral in good condition and repair (normal wear and tear excepted) and pay and discharge, or cause to be paid and discharged, when due, the cost of repairs or maintenance, and pay or cause to be paid all rent due on the Locations where any Collateral is or may be held. If the vendor or manufacturer of the Collateral has provided Borrower with a standard maintenance schedule, such schedule will constitute minimum maintenance compliance, and Borrower, upon request, will supply Lender with evidence of such compliance. Borrower shall use the Collateral solely for business or commercial purposes, in compliance with all applicable laws, ordinances, regulations, and the conditions of all insurance policies required to be maintained by Borrower pursuant to this Agreement. Any alteration, modification, additions or improvements to any items of the Collateral shall forthwith upon the making thereof become subject to the security interest of Lender granted herein. Borrower agrees that the Collateral shall be used and operated only by trained and competent operators in accordance with the manufacturer's instructions, any insurance requirement and any governmental rules and/or regulations.
Maintenance and Use of Collateral. Such Debtor (a) shall keep all its Inventory and Equipment in good condition and repair, reasonable wear and tear excepted, and shall not commit any material waste thereof or permit anything to be done which may materially impair the value thereof; (b) shall observe and perform all material terms, conditions and covenants contained in any material agreements, leases, licenses, permits, Operating Agreements and franchises evidencing the Intangibles, including, without limitation, the Licenses; (c) shall use the Collateral only in the ordinary course of its business and not in material violation of any applicable License, permit, authorization, law, ordinance, regulation, rule, order, franchise or policy of insurance; and (d) shall take all commercially reasonable actions as may be necessary to keep all material Patents, Copyrights and Trademarks from becoming invalidated or subject to any claim of abandonment for non-use.
Maintenance and Use of Collateral. ▇▇▇▇ shall not permit the Collateral to be used in violation of the Guaranty Agreement or this Deposit and Security Agreement.
Maintenance and Use of Collateral. TERI shall not permit the Collater▇▇ ▇o be used in violation of any of the Guaranty Agreements or this Agreement.
Maintenance and Use of Collateral. Debtor represents that Debtor owns all of the Collateral free and clear of all liens and encumbrances and agrees that Debtor will not encumber, assign, or grant any security interest in or file any assignment or financing statement with respect to the Collateral, or permit any of the foregoing, without the prior written consent of the Secured Party, and Debtor hereby represents that Debtor has not heretofore done so. Debtor represents that Debtor will not use the Collateral in violation of any statute or ordinance. Secured Party may examine and inspect the Collateral at any time, wherever located. Debtor acknowledges that, even if the Secured Party sells, assigns or otherwise transfers the Note to a third party, the Secured Party’s security interest in the Collateral will survive, and will extend to cover any proceeds from the sale of the Collateral, until the Note is paid in full. Debtor, at its own cost and expense, will maintain the Collateral in good repair and regularly updated condition. Unless otherwise approved by prior written consent of the Secured Party, Debtor shall (i) not sell, assign, lease, transfer or otherwise dispose of any part of the Debtor’s business or the Debtor’s assets, except for inventory items in the ordinary course of the Debtor’s business; (ii) not sell, assign, lease, transfer or otherwise dispose of any assets, or enter into any agreement to do so; (iii) not enter into any sale and leaseback agreement covering any of its fixed assets; (iv) maintain and preserve all rights, privileges, and franchises the Debtor possesses that are material to the operation of the Debtor’s business; and (v) make any repairs, renewals, or replacements to keep the Debtor’s properties and the Collateral in good working condition.
Maintenance and Use of Collateral. Debtor does hereby further covenant with Secured Party as follows:
(a) That the Collateral will be used solely for business purposes.
(b) That Debtor will defend the Collateral against the claims and demands of all persons at any time claiming the same or any interest therein.
(c) That Debtor has not and shall not grant to any Person other than Secured Party a security interest or any other interest or claim in the Collateral, except for the Collateral Exceptions.
(d) That there is not now and will not be filed in the future in any jurisdiction any financing statement listing any Person other than Secured Party as a secured party covering any or all of the Collateral except for the Collateral Exceptions.
(e) That, except for the Collateral Exceptions, Debtor will not permit any Liens or security interests other than Secured Party's security interest, to attach to any of the Collateral, permit any of the Collateral to be levied upon under legal process, permit anything to be done that may impair the value of any of the Collateral or the security intended to be afforded by this Agreement, or permit the Collateral to be or to become a fixture (and it is expressly covenanted, warranted and agreed that the Collateral, and any part thereof, whether affixed to any realty or not, shall be and remain personal property), or to become an accession to other goods or property. {OR498808;3} 5
(f) That Debtor will not sell, transfer, lease or otherwise dispose of any of the Collateral or any interest therein or offer to do so without the prior written consent of Secured Party; provided, however, that as long as the Secured Party has not accelerated the due date of the Obligations following an Event of Default, it may sell its Inventory in the normal and ordinary course of its business.
(g) That except for matters not material to Debtor, Debtor will not use the Collateral or permit the Collateral to be used in violation of any statute or ordinance and Debtor shall further comply with all statutes, regulations and ordinances applicable to the use or its ownership of the Collateral and to its business.
(h) That Debtor will pay promptly when due all taxes and assessments upon the Collateral or for its use or operation or upon any note or notes or other writing evidencing the Obligations, or any of them, or will contest such taxes and assessments by proper proceeding in good faith.
(i) That during the term of this Agreement, Debtor shall cause to be maintained on the Collater...
Maintenance and Use of Collateral. Borrower shall at all times maintain, preserve and keep the Property and all other collateral covered by the Loan Documents and shall maintain, preserve and keep the same, and each and every part and parcel thereof, in good repair and in safe condition. Without limiting the foregoing, the Borrower shall not without the Bank's prior written approval (i) remodel, add to, reconstruct, improve or demolish any part of the Property or other collateral covered by the Loan Documents, except as contemplated by and in accordance with the plans and specifications; (ii) permit the use or operation of the Property for any purpose except the use which is presently intended; or (iii) undertake or suffer any work to be done upon the Property other than routine maintenance and any work estimated to cost less than Fifty Thousand and no/100 Dollars ($50,000.00).
Maintenance and Use of Collateral. Borrower shall maintain, preserve, and keep all the collateral as provided in the Loan Documents, and the materials, fixtures, and equipment appurtenant thereto or used in connection therewith, and each and every part and parcel thereof, in good repair and working order and in safe condition at all times reasonable wear and tear excepted and subject to replacement. Without limiting the foregoing and to the extent applicable, Borrower shall not, without Bank's prior written consent, remodel, add to, reconstruct, improve, or demolish any material part of the Property or other collateral.