Common use of Right to Grant Security Interest Clause in Contracts

Right to Grant Security Interest. It has the right to grant a security interest in its Inventory Collateral. It will pay all taxes and other charges against its Inventory Collateral, and it will not use its Inventory Collateral illegally or allow its Inventory Collateral to be encumbered except for the security interest in favor of Lender granted herein and except for any Permitted Encumbrances.

Right to Grant Security Interest. It has the right to grant a security interest in its Inventory Equipment Collateral. It will pay all taxes and other charges against its Inventory Equipment Collateral, and it . It will not use its Inventory the Equipment Collateral illegally or allow its Inventory Equipment Collateral to be encumbered except for the security interest in favor of Lender granted herein and except for any Permitted Encumbrances.