Realization of Collateral Clause Samples
The 'Realization of Collateral' clause defines the process by which a lender or secured party may enforce its rights over collateral provided by a borrower in the event of default or other specified circumstances. Typically, this clause outlines the steps for seizing, selling, or otherwise disposing of the collateral to recover outstanding debts, and may specify notice requirements, methods of sale, or the application of sale proceeds. Its core practical function is to provide a clear and enforceable mechanism for the creditor to recover losses, thereby reducing credit risk and ensuring the effectiveness of the security arrangement.
Realization of Collateral. The MSO shall have, with respect to the Collateral, the rights and obligations of a secured party under the Uniform Commercial Code as adopted in the state of California (the "State"). Such rights shall include, without limitation, the following:
A. The right, upon default, to have the Collateral, or any part thereof, transferred to its own name or to the name of its nominee;
B. The right, upon default, to sell, assign or deliver as much of the Collateral as is reasonably necessary to repay the defaulted indebtedness (together with expenses attendant upon such sale and repayment), at public or private sale, as the MSO may elect, either for cash or on credit, without assumption of any credit risk and without demand or advertisement (unless otherwise required by law).
C. The New PC hereby irrevocably authorizes the MSO to sign and file financing statements naming the New PC as the debtor and the MSO as the secured party, at any time with respect to any Collateral, without the signature of the New PC. The New PC hereby irrevocably appoints the MSO as the New PC's attorney-in-fact, with full authority in the place and stead of the New PC and in the name of the New PC, from time to time in the MSO's discretion, to take any action and to execute any instrument which the MSO may deem necessary or advisable to accomplish the purposes hereof. The attorney-in-fact granted herein is coupled with an interest and is irrevocable. Third parties and entities and persons not a party to this Security Agreement are entitled to rely on this attorney-in-fact and an affidavit of the MSO attesting thereto. The acceptance of this appointment by the MSO shall not obligate it to perform any duty or covenant required to be performed by the New PC under or by virtue of the Collateral. Notwithstanding the foregoing power of attorney, the New PC shall at any time on the request of the MSO, sign Financing Statements, security agreements or other agreements with respect to any Collateral. Upon the New PC's failure to sign said Financing Statements, security agreements or other agreements, the MSO is authorized as the agent of the New PC to sign any such instruments. Upon the request of the MSO, the New PC agrees to pay all filing fees and to reimburse the MSO on demand for all costs and expenses of any kind (including, without limitation, legal fees) incurred in any way in connection with the Collateral.
Realization of Collateral. (a) The Pledgee shall apply the proceeds of any sale of the whole or any part of the Collateral, together with any other moneys at the time held by the Pledgee under the provisions of this Agreement after deducting all reasonable costs and expenses of collection, sale and delivery (including, without limitation, counsel fees and expenses) incurred by the Pledgee in connection with such sale, to the payment of the Obligations, the application as between the Obligations to be such as the Pledgee may in its sole discretion determine.
(b) To the full extent that the Pledgor may lawfully so agrees, the Pledgor will not at any time plead, claim or take the benefit of any appraisement or valuation, law now or hereafter in force in order to prevent or delay the enforcement of this Agreement or the absolute sale of any portion or all. of the Collateral, or the possession thereof by any purchaser at any sale, and the Pledgor, for itself and all who may claim under the Pledgor, as far as the Pledgor now or hereafter lawfully may, hereby waives the benefit of all such laws. The Pledgor, for itself and all who may claim under the Pledgor, as far as the Pledgor now or hereafter lawfully may, also waives all right to have all or any portion of the Collateral marshalled upon any foreclosure hereof and agrees that any court having jurisdiction over this Agreement may order the sale of all or any portion of the Collateral as an entirety. Any sale of, or the grant of options to purchase, or any other realization upon, all or any portion of the Collateral shall operate to divest all right, title, interest, claim and demand, either at law or in equity, of the Pledgor in and to the Collateral so sold, optioned or realized upon, and shall be a perpetual bar both in law and in equity against the Pledgor and against any and all persons claiming or attempting to claim the Collateral so sold, optioned or realized upon, or any part thereof, from, through and under the Pledgor. No delay on the pair of the Pledgee in exercising any power of sale, lien, option or other right hereunder, and no notice or demand which may be given to or made upon the Pledgor with respect to any power of sale, lien, option or other right hereunder shall constitute a waiver thereof, or limit or impair the right of the Pledgee to take any action or to exercise any power of sale, lien, option or any other right under this Agreement, or otherwise, nor shall any single or partial exercise thereof or the exercise...
Realization of Collateral. 8.1 Party A shall have the right to execute the collateral rights to pay off the unpaid debt with the proceeds of the collateral under the following circumstances:
(a) The Lessee fails to pay rent, liquidated damages, compensation damages or other payables according to the requested term, amount and currency set forth in the Principal Agreement for any lease term;
(b) Other defaults by the Lessee under the Principal Agreement;
(c) Party B’s refusal to perform the obligations under this Agreement such that the Party A’s collateral rights are jeopardized;
(d) Party B’s lawsuit, arbitration or major administrative legal case that may have negative impact on the collateral;
(e) Party B suffers from bankruptcy, out of business, dissolution, being brought to bankruptcy and reorganization, and cancellation or revocation of the business license;
(f) Party B fails to recover the value of the collateral or otherwise provides equivalent security with the detracted value in accordance with the Agreement;
(g) Circumstances that make it difficult or unable for Party A to realize the collectability of its credit under the Principal Agreement.
8.2 Party A has the right to take any of the following methods to execute collateral:
(a) Negotiate with Party B to apply the value of the collateral as a payment to repay the debt, or to use the proceeds from the auction or sale of the collateral to first repay the unpaid debt;
(b) Petition the People’s Court to auction or sell the collateral, and use the proceeds to first repay the unpaid debt.
8.3 Party B shall cooperate with Party A in disposing the collateral in accordance with the Agreement. Party B must not block or interfere with the disposition.
8.4 Payments to Party A from Party B shall be applied in the following order:
(a) the expenses related to the collection of the principal debt or exercising the guarantee rights;
(b) defaults paid by Party B;
(c) damage compensation paid by Party B;
(d) defaults paid by the Lessee;
(e) damage compensation paid by the Lessee;
(f) Accrued unpaid rent or other payables paid by the Lessee. Party A has the right to adjust the above distress order as necessary.
8.5 Whether Party A has other security to the debt under the Principal Agreement (including but not limited to commitment, collateral, pledge etc. ), no matter when the above security is established, whether such security is valid, whether Party A asserts its rights to other guarantee, whether the third party agrees to undertake al...
Realization of Collateral. ▇▇. ▇▇▇▇▇▇▇ shall have, with respect to the Collateral, the rights and obligations of a secured party under the Uniform Commercial Code as adopted in the state of California (the "State"). Such rights shall include, without limitation, the following:
A. The right, upon default, to have the Collateral, or any part thereof, transferred to its own name or to the name of its nominee;
B. The right, upon default, to sell, assign or deliver as much of the Collateral as is reasonably necessary to repay the defaulted indebtedness (together with expenses attendant upon such sale and repayment), at public or private sale, as ▇▇. ▇▇▇▇▇▇▇ may elect, either for cash or on credit, without assumption of any credit risk and without demand or advertisement (unless otherwise required by law).
C. OMEGA shall at any time on the request of ▇▇. ▇▇▇▇▇▇▇, sign Financing Statements, security agreements or other agreements with respect to any Collateral. Upon OMEGA's failure to sign said Financing Statements, security agreements or other agreements, ▇▇. ▇▇▇▇▇▇▇ is authorized as the agent of the OMEGA to sign any such instruments. Upon the request of ▇▇. ▇▇▇▇▇▇▇, OMEGA agrees to pay all filing fees and to reimburse ▇▇. ▇▇▇▇▇▇▇ on demand for all costs and expenses of any kind (including, without limitation, legal fees) incurred in any way in connection with the Collateral.
Realization of Collateral. Dr. Leonard shall have, with respect to th▇ ▇▇▇▇▇▇▇▇▇l, the rights and obligations of a secured party under the Uniform Commercial Code as adopted in the State. Such rights shall include, without limitation, the following:
A. The right, upon default, to have the Collateral, or any part thereof, transferred to its own name or to the name of its nominee;
B. The right, upon default, to sell, assign or deliver as much of the Collateral as is reasonably necessary to repay the defaulted indebtedness (together with expenses attendant upon such sale and repayment), at public or private sale, as Dr. Leonard may elect, either for cash or on cr▇▇▇▇, ▇▇▇▇▇ut assumption of any credit risk and without demand or advertisement (unless otherwise required by law).
C. OMEGA shall at any time on the request of Dr. Leonard, sign Financing Statements, securit▇ ▇▇▇▇▇▇▇▇▇s or other agreements with respect to any Collateral. Upon OMEGA's failure to sign said Financing Statements, security agreements or other agreements, Dr. Leonard is authorized as the agent of the O▇▇▇▇ ▇▇ ▇▇▇n any such instruments. Upon the request of Dr. Leonard, OMEGA agrees to pay all filing fees ▇▇▇ ▇▇ ▇eimburse Dr. Leonard on demand for all costs and expens▇▇ ▇▇ ▇▇▇ kind (including, without limitation, legal fees) incurred in any way in connection with the Collateral.
Realization of Collateral. Upon the following, the Bank shall be entitled to exercise all rights and remedies of a secured party under the UCC, and may collect, receive, appropriate, and realize upon the Collateral, or any part thereof, and/or may forthwith sell, lease, assign, give an option or options to purchase, or sell or otherwise dispose of and deliver such Collateral (or contract to do so), or any part thereof, and all such proceeds shall be used to pay the Bank all of the Secured Sums:
(a) on the due date of the Secured Sums (or any part thereof), if it has been agreed between the Bank and the Affiliated Company that the particular amount is payable on a particular date (giving effect to any grace periods as agreed between the Bank and the Affiliated Company or the Guarantor in writing), and the Affiliated Company has not paid such Secured Sums;
(b) at the end of ten (10) days from the date of receipt by Guarantor of the Bank’s first written demand to the Guarantor, if a due date has not been agreed as provided in paragraph (a) above, if such Secured Sums have not been paid by Affiliated Company;
(c) the occurrence of an Event of Default.