Common use of Shared Collateral Clause in Contracts

Shared Collateral. Notwithstanding anything to the contrary contained in the New Note Security Documents or the TransTexas Note Security Documents, Shared Collateral in the possession of the Collateral Agent pursuant to this Agreement, in the possession of TEC or the TEC Note Trustee pursuant to any of the New Note Security Documents, or in the possession of the TransTexas Note Trustee pursuant to any of the TransTexas Note Security Documents shall, pursuant to Section 9-305 of the Uniform Commercial Code as in effect in the State of New York, be held by such party in possession for its own account to the extent of its interest therein, and as pledgeholder and bailee for each of the other Secured Creditors, so that each of the Secured Creditors shall be deemed to have possession of such Shared Collateral. Each Secured Creditor is authorized and directed by the Issuer to deliver to the Collateral Agent for the benefit of the Secured Creditors pursuant to this Agreement any Shared Collateral now or hereafter in the possession of such Secured Creditor, and none of such Shared Collateral shall be released or distributed to the Issuer without the prior written consent of the TEC Note Trustee, on behalf of the Junior Secured Creditor, and the TransTexas Note Trustee, on behalf of the Senior Secured Creditors.

Shared Collateral. Notwithstanding anything to the contrary contained in the TEC Pledge Agreement, the New Note Security Documents or the TransTexas TARC Note Security Documents, Shared Collateral in the possession of the Collateral Agent pursuant to this Agreement, in the possession of TEC or the TEC Note Trustee pursuant to any of the New Note Security Documents, or in the possession of the TransTexas TARC Note Trustee pursuant to any of the TransTexas TARC Note Security Documents shall, pursuant to Section 9-305 of the Uniform Commercial Code as in effect in the State of New York, be held by such party in possession for its own account to the extent of its interest therein, and as pledgeholder and bailee for each of the other Secured Creditors, so that each of the Secured Creditors shall be deemed to have possession of such Shared Collateral. Each Secured Creditor is authorized and directed by the Issuer to deliver to the Collateral Agent for the benefit of the Secured Creditors pursuant to this Agreement any Shared Collateral now or hereafter in the possession of such Secured Creditor, and none of such Shared Collateral shall be released or distributed to TEC or the Issuer without the prior written consent of the TEC Note Trustee, on behalf of the TEC Note Holders or the Junior Secured Creditor, and the TransTexas TARC Note Trustee, on behalf of the Senior Secured Creditors.