Common use of Purchase of Collateral by Pledgee Clause in Contracts

Purchase of Collateral by Pledgee. The Pledgee may be a purchaser of the Collateral or any part thereof or any interest therein at any sale or other disposition hereunder and may apply against the purchase price the indebtedness secured hereby, in the case of the Pledgee, the indebtedness secured hereby owing to such purchaser, to the extent of such purchaser's distributive share of the purchase price. The Pledgee shall, upon any such purchase, acquire good title to the Collateral so purchased free of the lien and security interest created by this Agreement and free of all rights of equity or redemption in any Pledgor, which right of equity and redemption each Pledgor hereby expressly waives and releases, and each Pledgor hereby covenants to warrant and defend the title of such purchaser against all claims arising by, through or under any Pledgor.