Common use of Release of Liens and Security Interests Clause in Contracts

Release of Liens and Security Interests. A. Except as expressly required by the terms of this Agreement or applicable law, Lender shall not be obligated to release its liens and security interests in any portion of the Collateral so long as any Obligations remain outstanding; provided, however, that any release by Lender of its liens and security interests in any portion of the Collateral shall apply only to such of the Collateral as is specifically described in the release given by Lender and shall not in any way constitute a release by Lender of its liens and security interests in the Proceeds, products or accessions of such Collateral in existence at the time of such release or of any other Collateral. B. So long as no Default or Event of Default has occurred and is continuing or would, as a result of or after giving effect to the sale, exist or be continuing, (i) Borrower may, in the ordinary course of business, sell to third parties synthetic coal products; and (ii) Borrower may, in the ordinary course of business, sell or otherwise dispose of obsolete or excess Equipment used or useful in connection with the Alabama Project of an aggregate value not exceeding Five Thousand Dollars ($5,000) during the term of hereof, and Lender shall, if requested by Borrower, release its security interest in and Lien upon such Equipment. C. Lender shall release its liens and security interest in the Collateral upon the first of the following to occur: (i) the termination of the Commitments and the satisfaction in full of all Obligations under the Loan Documents; (ii) the closing of the purchase by Birmingham Syn Fuel, L.L.C. of the Alabama Project pursuant to the Alabama Project Purchase Agreement, or (iii) the conversion of all of the outstanding Term Loans and Commitments into Shares pursuant to Article X hereof.