Common use of Pledge of the Collateral Clause in Contracts

Pledge of the Collateral. (a) To secure the full payment of the Indebtedness and the performance of the Obligations, each Pledgor hereby sells, conveys, assigns, transfers and grants a first priority continuing security interest in, pledges and sets over unto Agent, for Agent’s own benefit and the benefit of Lenders, all of its right, title and interest, whether now owned or hereafter acquired or arising, in and to each Collection Account and all interest, dividends, credits and proceeds relating thereto and all monies, checks and other similar instruments held or deposited therein (collectively, the “Collateral”): (b) Bank acknowledges that this Agreement constitutes notice of Agent’s security interest in the Collateral and hereby acknowledges and consents thereto. (c) Pledgors hereby authorize Agent to file UCC financing statements describing the Collateral and evidencing and perfecting the security interest in the Collateral granted to Agent pursuant to this Agreement and to file any other UCC financing statements reasonably necessary or advisable to accomplish the purposes of this Agreement.