Negative lien Clause Samples

A negative lien is a contractual provision that restricts a borrower from creating any security interest or encumbrance over specified assets without the lender's consent. In practice, this means the borrower cannot pledge, mortgage, or otherwise use those assets as collateral for other debts while the agreement is in effect. This clause is commonly used in loan agreements to protect the lender's interests by ensuring that the borrower's assets remain unencumbered, thereby reducing the risk that other creditors could claim priority over those assets in the event of default.
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Negative lien. Except the charges and encumbrances already created on the fixed assets by the Borrower for availing financial assistance, as disclosed in writing as of date by the Borrower, the Borrower shall not without prior written consent of the Bank:- a) create or permit to arise or subsist any mortgage, charge, pledge, lien encumbrance or security interest whatsoever over all or any of its undertaking, assets present or future (including un-called capital) of the Borrower as security for any obligations now or hereafter existing in favour of any person, however, subject to following exceptions:- i) The Borrower may create security interests on its assets to secure the issue of its secured long term bonds with a maturity in excess of one year. ii) The Borrower may create security interest on its assets to secure any rupee loan, the repayment of which is due within 12 months or less from the date of the said loan including working capital financing and iii) The Borrower may create security interest on its assets to secure any foreign currency borrowings from multilateral and bilateral agencies like IBRD, JBIC, KFW etc. b) Sell, transfer or otherwise dispose of, by one or more transactions or series of transactions (whether related or not) the whole or any substantial part of its fixed assets, the book value of which is 25% or more of the book value as shown in the latest audited financial statements of the Borrower.
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Negative lien. The Borrower shall not without prior written consent of the Bank: - a) create or permit to arise or subsist any mortgage, charge, pledge, lien encumbrance or security interest whatsoever over all or any of the 15 RE assets for which loan is availed by the Borrower as security for any obligations now or hereafter existing in favour of any person, however, subject to following exception: - i) The Borrower may create security interests on its assets to secure the issue of its secured long-term bonds with a maturity in excess of one year. The Borrower may create pari-passu security interests on aforesaid assets in favour of other lenders (if required). b) Sell, transfer, or otherwise dispose of, by one or more transactions or series of transactions (whether related or not) the whole or any substantial part of its fixed assets with respect to above project.
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Negative lien. The Borrower shall not without prior written consent of the Bank: - a) create or permit to arise or subsist any mortgage, charge, pledge, lien encumbrance or security interest whatsoever over all or any of its assets present or future with respect to the 450 MW Wind Solar Hybrid project won under Tranche-IV RfS floated by Solar Energy Corporation of India Limited (SECI) for which loan is availed by the Borrower as security for any obligations now or hereafter existing in favour of any person, however, subject to following exception: - The Borrower may create pari-passu security interests on aforesaid assets in favour of other lenders (if required). b) Sell, transfer, or otherwise dispose of, by one or more transactions or series of transactions (whether related or not) the whole or any substantial part of its fixed assets with respect to above project.
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Negative lien. [ICICI BANK LETTERHEAD] ANNEXURE III NOTICE OF DRAWDOWN/REQUEST FOR DISBURSEMENT The Branch Manager ICICI Banking Corporation Limited Mumbai Branch Dear Sir, Re: Multicurrency Corporate Credit (MCC) facility ______________ Request for disbursement Please refer to the letter of sanction dated _______________. We request you to disburse/release an amount of _______________. We give below the particulars against which the drawing is required.
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Negative lien. The Company shall not create or permit to subsist any Security Interest over the Secured Assets.
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Negative lien. The Borrower hereby declares and undertakes that all the company’s / LLP’s / firm’s movable and immovable assets shall not be sold or disposed off or mortgaged, charged or hypothecated or encumbered in any way without the prior consent of the Bank in writing, so long as the company / LLP / firm is indebted or liable to the Bank in any manner whatsoever.
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Negative lien. The Borrower shall not without prior written consent of the Bank: - a) create or permit to arise or subsist any mortgage, charge, pledge, lien encumbrance or security interest whatsoever over all or any of its assets present or future with respect to the 325 MW Shajapur project for which loan is availed by the Borrower as security for any obligations now or hereafter existing in favour of any person, however, subject to following exception: - The Borrower may create pari-passu security interests on aforesaid assets in favour of other lenders (if required). b) Sell, transfer, or otherwise dispose of, by one or more transactions or series of transactions (whether related or not) the whole or any substantial part of its fixed assets with respect to above project.
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Related to Negative lien

  • Security Interest in Financed Vehicle Immediately prior to the sale, transfer and assignment thereof pursuant hereto and the First Step Receivables Assignment, each Receivable was secured by a validly perfected first priority security interest in the Financed Vehicle in favor of the Seller as secured party or all necessary and appropriate action had been commenced that would result in the valid perfection of a first priority security interest in the Financed Vehicle in favor of the Seller as secured party.

  • Security Interest in Financed Equipment Immediately prior to the sale, assignment and transfer thereof, each Receivable shall be secured by a validly perfected first priority security interest in the Financed Equipment in favor of CNHICA as secured party or all necessary and appropriate actions have been commenced that would result in the valid perfection of a first priority security interest in the Financed Equipment in favor of CNHICA as secured party.

  • Security Interest in Financed Vehicles Immediately prior to the transfer of the Receivables by the Depositor to the Trust, each Receivable was secured by a valid, binding and enforceable first priority perfected security interest in favor of the Seller in the related Financed Vehicle, or all necessary and appropriate actions shall have been commenced that would result in the valid perfection of a first priority security interest in favor of the Seller in the Financed Vehicle, which security interest has been validly assigned by the Seller to the Depositor pursuant to the Receivables Purchase Agreement and by the Depositor to the Trust hereunder.

  • Other Mortgage Liens None of the Mortgage Loans permits the related Mortgaged Property to be encumbered by any mortgage lien junior to or of equal priority with the lien of the related Mortgage without the prior written consent of the holder thereof or the satisfaction of debt service coverage or other underwriting criteria specified therein. To the Mortgage Loan Seller's knowledge, except for cases involving Cross-Collateralized Mortgage Loans, none of the Mortgaged Properties securing the Mortgage Loans is encumbered by any mortgage liens junior to or of equal priority with the liens of the related Mortgage. Each of the related Mortgage Loan Documents requires the Borrower to pay all reasonable costs and expenses related to obtaining consent to an encumbrance.

  • Security Interest/Priority This Security Agreement creates a valid security interest in favor of the Agent, for the benefit of the Lenders, in the Collateral of such Obligor and, when properly perfected by filing, shall constitute a valid perfected security interest in such Collateral, to the extent such security can be perfected by filing under the UCC, free and clear of all Liens except for Permitted Liens.