New Collateral Clause Samples
The "New Collateral" clause defines the requirements and procedures for providing additional or replacement collateral under an agreement. Typically, this clause outlines the circumstances under which a party must deliver new collateral, the acceptable forms such collateral may take, and the process for valuing and approving it. For example, if the value of existing collateral falls below a specified threshold, the party may be required to provide new assets to restore the agreed coverage. The core function of this clause is to ensure that the secured party maintains adequate protection against credit risk throughout the term of the agreement.
New Collateral. If, before the Obligations shall have been irrevocably paid in full and the Commitment terminated, Pledgor shall obtain rights to any new Collateral, the provisions of this Agreement hereby shall automatically apply thereto as if the same were identified on Schedule 1 as of the date hereof and Pledgor shall give Lender prompt written notice thereof.
New Collateral. Pool Borrower shall propose a guarantor acceptable to Lender, which guarantor executes and delivers a guaranty acceptable to Lender;
New Collateral. If, before the Obligations shall have been irrevocably paid in full, Borrower shall obtain rights to any new Collateral, the provisions of this Agreement hereby shall automatically apply thereto as if the same were identified on Schedule 1 as of the date hereof and Borrower shall give Lender prompt written notice thereof.
New Collateral. Lender shall have received a first priority lien on and security interest in all real and personal property located on or associated with the Additional Sites (the “New Collateral”) to further secure payment and performance of all Obligations. In that connection: (i) Lender shall have completed its due diligence review of the New Collateral and the results shall be satisfactory to Lender in its sole and absolute discretion; (ii) Borrower shall have delivered to Lender such mortgages, deeds of trust, security agreements, pledges, and other documents as Lender may require, in form acceptable to Lender, in its sole and absolute discretion, granting to Lender a lien and security interest in the New Collateral, with each such document upon execution, to be deemed to be one of the Loan Documents; and (iii) all such documents and related UCC financing statements shall have been properly filed or recorded in the appropriate governmental recording office, as required by Lender. The New Collateral shall be considered part of the Collateral for all purposes under the Loan Documents. In addition, all documents to transfer fee title to the site at ▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇ to Summit Hotel OP, LP, must be received by Lawyers Title, as escrow agent, and all conditions to recording such deed shall have been satisfied.
New Collateral. If the Borrower or any Restricted Subsidiary shall acquire any Material Real Property (or shall make improvements upon any existing real property interest resulting in such interest together with such improvements constituting Material Real Property), and, if the Administrative Agent elects to encumber such property in the Administrative Agent’s sole and absolute discretion, then
(a) the Borrower will and will cause each Restricted Subsidiary to, no later than 120 days (or such longer period as the Administrative Agent may agree in its sole and absolute discretion) thereafter, deliver to the Administrative Agent the following documents (each of which shall be executed (and, where appropriate, acknowledged) by Persons satisfactory to the Administrative Agent):
(i) Mortgages in form and substance satisfactory to the Administrative Agent, duly executed and delivered by the Borrower or such Restricted Subsidiary, as the case may be, in recordable form (in such number of copies as the Administrative Agent shall have requested) and, to the extent necessary with respect to any leasehold property to be subject to a Mortgage, use commercially reasonable efforts by Borrower to obtain consents of the respective landlords with respect to such property and, to the extent necessary under applicable law, for filing in the appropriate county land office(s), UCC financing statements covering fixtures, in each case appropriately completed (the “Fixture Filings”);
(ii) one or more mortgagee policies of title insurance on forms of and issued by one or more title companies satisfactory to the Administrative Agent (the “Title Companies”), insuring the validity and first lien priority of the Liens created under the Mortgages for and in amounts satisfactory to the Administrative Agent, subject only to such exceptions as are satisfactory to the Administrative Agent; each such title policy shall contain: (A) full coverage against mechanics’ liens (filed and inchoate) or such surety bonds or other additional collateral as may be satisfactory to the Administrative Agent in its sole discretion in lieu of such coverage, (B) a reference to the relevant survey with no survey exceptions except those theretofore approved by the Administrative Agent (such approval not to be unreasonably withheld or delayed) and (C) such affirmative insurance and endorsements as the Administrative Agent may reasonably require;
(iii) as-built surveys of recent date of each of the Facilities to be covered by t...
New Collateral. In order to create in favor of Collateral Agent (for the benefit of the Secured Parties) valid, perfected First Priority Liens in the New Collateral, subject to Permitted Liens, Borrowers shall have delivered to Collateral Agent evidence satisfactory to Collateral Agent of the compliance by the Obligors of their respective obligations under the Security Agreement, and the other Security Documents to which they are a party (including their obligations to execute and deliver (a) UCC financing statements and the results of a recent search by a Person satisfactory to Administrative Agent that there are no UCC or Tax or other Lien filings on any of the assets of Borrower Parties except for Liens pursuant to the A&R Loan Documents, (b) originals of securities, (c) instruments and chattel paper, and (d) any agreements governing deposit and/or securities accounts as provided therein).
New Collateral. If, before the Debt shall have been satisfied in full, Pledgor shall obtain rights to any new Collateral, the provisions of Section 1 shall automatically apply thereto as if the same were identified on Schedule A as of the date hereof and Pledgor shall give Agent prompt written notice thereof.
New Collateral. If and when any new Borrowing Base Asset is added (other than a new Borrowing Base Asset that is substituted pursuant to Section 7.3), for any reason, then all of the conditions described in Section 7.3 (excluding Section 7.3(c), but specifically including, without limitation, all conditions described in Section 6 as adopted by Section 7.3(d)) must be fulfilled as conditions precedent to the Borrower's ability to borrow any Revolving Credit Loans or obtain the issuance of any Letters of Credit attributable to the addition of such new Borrowing Base Asset.
New Collateral. (If Any) Due by 11:00 AM on the Day of a Requested Revolving Loan. Unless the Borrowing Base already has sufficient value to support both (i) the requested Revolving Loan and (ii) all other outstanding Revolving Loans, by 11:00 AM on the Business Day on which the Borrowers request that a Revolving Loan be funded, the Borrowers shall (1) deliver to the Seasoned Warehouse Agent one or more signed Submission Lists describing the additional Collateral then being Pledged to the Seasoned Warehouse Agent and (2) cause such additional Collateral to be delivered to the Seasoned Warehouse Agent. If, after giving effect to a requested Revolving Loan, the outstanding Revolving Loans would exceed the Borrowing Base, or if the Seasoned Warehouse Agent determines that any Collateral submitted to it is incomplete, deficient or defective in any material respect, then:
(a) the Seasoned Warehouse Agent shall withhold the requested Revolving Loan -- or so much thereof as requires the Collateral Value of the Collateral whose Submission List description, additional Collateral Papers or other evidence submitted are incomplete or incorrect in any material respect -- until the Borrowers shall have demonstrated to the Warehouse Agent's reasonable satisfaction that the relevant Submission Lists and all required additional Collateral Papers and other evidence submitted, are in fact not (or are no longer) incomplete or incorrect in any material respect; or
(b) in the case of any Borrowing Base insufficiency, unless the Borrowers instruct the Seasoned Warehouse Agent in writing not to disburse any of the requested Revolving Loan, and subject to the provisions and limitations of SECTION 3.1, the Seasoned Warehouse Agent will disburse such lesser amount(s) as the Seasoned Warehouse Agent shall determine is supported by the Borrowing Base and will notify the Borrowers of such insufficiency, including the Seasoned Warehouse Agent's calculation of such insufficiency set forth in reasonable detail.
New Collateral. (If Any) Due by 11:00 AM on the Day of a Requested Revolving Loan. . . .