Nature of Collateral Clause Samples
The "Nature of Collateral" clause defines what assets or property are being pledged as security for an obligation under the agreement. It typically specifies the type, characteristics, and sometimes the location or condition of the collateral, such as cash, securities, equipment, or real estate. By clearly outlining what constitutes acceptable collateral, this clause ensures both parties understand what is at stake and helps prevent disputes over the sufficiency or appropriateness of the assets securing the agreement.
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Nature of Collateral. None of the Collateral of such Grantor constitutes, or is the proceeds of, farm products and none of the Collateral has been purchased or will be used by such Grantor primarily for personal, family or household purposes, and as of the Closing Date, except as set forth on Schedule 6.06:
(a) none of the account debtors or other persons obligated on any of the Collateral of such Grantor is a Governmental Authority subject to the Federal Assignment of Claims Act or like federal, state or local statute or rule in respect of such Collateral;
(b) such Grantor has no deposit accounts or other bank accounts; and
(c) such Grantor has no securities accounts or securities entitlements.
Nature of Collateral. At all times maintain the Collateral as personal property and not affix any of the Collateral to any real property in a manner which would change its nature from personal property to real property or a Fixture to real property, unless the Administrative Agent shall have a perfected Lien on such Fixture or real property.
Nature of Collateral. The Collateral shall remain personal property, notwithstanding the manner in which it may be affixed to any real property. Borrower shall obtain and cause to be recorded, where appropriate, at its own expense, from each landlord, owner, mortgagee or any person having an encumbrance or lien upon the real property where the Collateral is located, a waiver of any lien, encumbrance or interest which such person might have or hereafter obtain or claim with respect to the Collateral. Borrower, at its expense, will protect and defend the title to the Collateral and will otherwise take all action required to keep the Collateral free and clear of all claims, levies, liens and encumbrances except for the security interest of Lender. Lender assumes no liability and makes no representation as to the treatment by Borrower of this Agreement, the Collateral, or the payments due hereunder for financial, accounting or tax purposes.
Nature of Collateral. In addition to all other liens, assignments and all other rights of Bank granted pursuant to any of the Loan Documents, the Collateral, together with all of Borrowers' other property of any kind held by Bank, shall stand as one general, continuing collateral security for all Obligations and may be retained by Bank until all Obligations have been satisfied in full.
Nature of Collateral. None of the Collateral of such Grantor constitutes, or is the proceeds of, farm products and none of the Collateral has been purchased or will be used by such Grantor primarily for personal, family or household purposes, and as of the Closing Date, except as indicated in the Perfection Certificate and as of any date of any Perfection Supplement, except as indicated in such Perfection Supplement or in the Perfection Certificate:
(a) none of the account debtors or other persons obligated on any of the Collateral of such Grantor is a Governmental Authority subject to the Federal Assignment of Claims Act or like federal, state or local statute or rule in respect of such Collateral;
(b) such Grantor holds no commercial tort claims that it has asserted against any other Person;
(c) such Grantor has no deposit accounts or other bank accounts;
(d) such Grantor owns no motor vehicles;
(e) such Grantor has no securities accounts or securities entitlements or commodities accounts or commodities contracts;
(f) such Grantor holds no interest in, title to or power to transfer, any registered Patents, registered Trademarks, registered Copyrights or material inbound licenses (other than off-the-shelf software and open source technology).
Nature of Collateral. The Collateral may be installed in or located on the Premises and is not and shall not be deemed to be a fixture or part of the underlying real estate but shall at all times be considered personal property.
Nature of Collateral. None of the Collateral constitutes, or is the proceeds of, farm products and none of the Collateral has been purchased will be used by Pledgor primarily for personal, family or household purposes, and except as indicated in the Perfection Certificate:
(a) none of the account debtors or other persons obligated on any of the Collateral is a governmental authority subject to the Federal Assignment of Claims Act or like federal, state or local statute or rule in respect of such Collateral (a "GOVERNMENT DEBTOR"), which Collateral has a value of at least $1,000,000, and, in the case of Collateral that is a contract, also has a term of at least one (1) year.
(b) Pledgor holds no commercial tort claims.
Nature of Collateral. None of the Collateral of such Grantor constitutes, or is the proceeds of, farm products and none of the Collateral has been purchased or will be used by such Grantor primarily for personal, family or household purposes, and as of the Closing Date, except as indicated in the Perfection Certificate and as of any date of any Perfection Supplement, except as indicated in such Perfection Supplement or in the Perfection Certificate:
(a) none of the account debtors or other persons obligated on any of the Collateral of such Grantor is a governmental authority subject to the Federal Assignment of Claims Act or like federal, state or local statute or rule in respect of such Collateral;
(b) such Grantor holds no commercial tort claims;
(c) such Grantor has no deposit accounts or other bank accounts;
(d) such Grantor owns no motor vehicles;
(e) such Grantor has no securities accounts or securities entitlements or commodities accounts or commodities contracts;
(f) such Grantor holds no interest in, title to or power to transfer, any Patents, Patent Licenses, Trademarks, Trademark Licenses, Trade Secrets, Trade Secret Licenses, Copyrights or Copyright Licenses; and
(g) such Grantor holds no interest in, title to or power to transfer any Intellectual Property that is eligible for registration in the PTO or the Copyright Office.
Nature of Collateral. At all times maintain the Collateral as personal property and not affix any of the Collateral with an aggregate value for all such Collateral in excess of $250,000 to any real property in a manner which would change its nature from personal property to real property or a Fixture to real property, unless the Administrative Agent shall have a perfected Lien on such Fixture or real property.
Nature of Collateral. The Borrowers are the owners of the Collateral, free from any right or claim of any person or any adverse Lien, except for the security interest created by this Agreement and Permitted Liens, (b) none of the Collateral constitutes, or is the proceeds of, “farm products” as defined in Section 9-102(a)(34) of the Uniform Commercial Code, (c) none of the account debtors or other persons obligated on any of the Collateral is a governmental authority covered by the Federal Assignment of Claims Act or like federal, state or local statute or rule in respect of such Collateral, (d) the Borrowers hold no material commercial tort claim except as indicated on the Perfection Certificate, (e) the Borrowers have at all times operated their business in compliance with all applicable provisions of the federal Fair Labor Standards Act, as amended, and with all applicable provisions of federal, state and local statutes and ordinances dealing with the control, shipment, storage or disposal of hazardous materials or substances, (f) all other information set forth on the Perfection Certificate pertaining to the Collateral is accurate and complete in all material respects, and (g) there has been no change in any of such information since the date on which the Perfection Certificate was signed by the Borrowers.