Specific Representations Regarding Collateral Clause Samples

The "Specific Representations Regarding Collateral" clause requires a party, typically the borrower, to make explicit statements about the status, ownership, and condition of the collateral being pledged in a transaction. This may include confirming that the collateral is free of other liens, is not subject to undisclosed claims, and is in good working order or otherwise meets agreed standards. By requiring these representations, the clause ensures that the lender has accurate information about the collateral's value and legal standing, thereby reducing the risk of disputes or losses related to the collateral's validity or enforceability.