Subsidiary Pledge Clause Samples

A Subsidiary Pledge clause establishes that a subsidiary company is granting a security interest in its assets to secure obligations, typically those of itself or its parent company, under a financing arrangement. In practice, this means the subsidiary's assets—such as inventory, receivables, or equipment—can be claimed by the lender if the borrower defaults on the loan. This clause is commonly used in group financing structures to provide additional collateral and enhance the lender's security, thereby reducing the lender's risk and potentially enabling more favorable loan terms for the borrower.
Subsidiary Pledge. Upon the creation or acquisition of any Subsidiary, the Parent shall cause such Subsidiary to execute and deliver a Joinder Agreement and such other documentation as the Agent may request to cause such Subsidiary to evidence, perfect, or otherwise implement the guaranty and security for repayment of the Obligations contemplated by the Master Guaranty and the Amended and Restated Master Security Agreement.
View SourceView Similar (5)
Subsidiary Pledge. 23 Section 9.6 Further Agreement by Guarantor............................24
View Source
Subsidiary Pledge. Within forty-five days of the creation or acquisition of any Subsidiary, other than the creation or acquisition of a Restricted Group Member or an Acquisition Subsidiary, the Parent shall cause such Subsidiary to execute and deliver a Subsidiary Joinder Agreement and such other documentation as the Agent may request to cause such Subsidiary to evidence, perfect, or otherwise implement the guaranty and security for repayment of the Obligations contemplated by a THIRD AMENDED AND RESTATED CREDIT AGREEMENT, Page 41 Guaranty, the Subsidiary Security Agreement and, if applicable, a Subsidiary Pledge Agreement. Upon the earlier to occur of: (i) the date that is nine months from the date of the creation of any Acquisition Subsidiary (that is not a Restricted Group Member) or (ii) the date that is forty-five days after the date of the consummation of the acquisition for which the Acquisition Subsidiary was created, the Parent shall cause such Acquisition Subsidiary (that is not a Restricted Group Member) to execute and deliver a Subsidiary Joinder Agreement and such other documentation as the Agent may request to cause such Acquisition Subsidiary to evidence, perfect, or otherwise implement the guaranty and security for repayment of the Obligations contemplated by a Guaranty, the Subsidiary Security Agreement and, if applicable, a Subsidiary Pledge Agreement. Within forty-five days of the creation or acquisition of any Restricted Group Member (other than Friends LP and FGP) which is not restricted by law or agreement from joining as an Obligated Party, the Parent shall cause such Restricted Group Member to execute and deliver a Subsidiary Joinder Agreement and such other documentation as the Agent may request to cause such Restricted Group Member to evidence, perfect, or otherwise implement the guaranty and security for repayment of the Obligations contemplated by a Guaranty, the Subsidiary Security Agreement and, if applicable, a Subsidiary Pledge Agreement; provided, however, if such Restricted Group Member is an Acquisition Subsidiary, then such execution and delivery shall take place before the earlier to occur of: (i) the date that is nine months from the date of the creation of such Restricted Group Member or (ii) the date that is forty-five days after the date of the consummation of the acquisition for which such Restricted Group Member was created.
View Source
Subsidiary Pledge. Upon the creation or acquisition of any Subsidiary, Holding shall cause such Subsidiary to execute and deliver to Agent a Subsidiary Guaranty, a Subsidiary Security Agreement, a Mortgage and such other documentation as the Agent may request to cause such Subsidiary to evidence, perfect or otherwise implement the guaranty and security for the repayment of the Obligations contemplated by a Subsidiary Guaranty, Subsidiary Security Agreement and Mortgage. If any Subsidiary is created or acquired after the Closing Date, the Borrower shall execute and deliver to the Agent an amendment to the Borrower Security Agreement describing as collateral thereunder the stock of or other ownership interest in the new Subsidiary and the Borrower shall deliver the certificates representing such stock or other interests to the Agent together with undated stock or other powers duly executed in blank.
View Source
Subsidiary Pledge. To secure the prompt payment and performance of all of the Obligations under the Loan Documents and its guarantee made in this Article 9, Guarantor hereby grants to Lender a continuing security interest in all of Guarantor's assets or property whether real, personal or mixed, or tangible or intangible, wheresoever located, now owned or hereafter acquired by Guarantor, including without limitation, all Accounts, Certificated Securities, Chattel Paper, Contract Rights, Deposit Accounts, Documents, Equipment, Financial Assets, Fixtures, General Intangibles, Goods, Instruments, Inventory, Investment Property, Security Entitlements, Uncertificated Securities, Commercial Tort Claims, Software, Letter of Credit Rights and all Proceeds thereof (as each such defined term is defined in the UCC) and to the extent not included in the foregoing, all property and assets of any kind or description owned by Guarantor, all of such assets and property (together with the "Collateral" of Borrower pursuant to Section 3.1 hereof) being collectively hereinafter the "Collateral."
View Source
Subsidiary Pledge. Upon the creation or acquisition of any Subsidiary that is not an Insignificant Subsidiary or if any Insignificant Subsidiary's net worth or total assets increases so that it is no longer an Insignificant Subsidiary, the Borrower shall cause such Subsidiary to execute and deliver to Agent a Guaranty, a Subsidiary Security Agreement and such other documentation as the Agent may request to cause such Subsidiary to evidence, perfect or otherwise implement the guaranty and security for the repayment of the Obligations contemplated by a
View Source
Subsidiary Pledge. Upon the creation or acquisition of any Subsidiary or if a Default occurs and the Agent requests with respect to AHG Partnership, the Borrower shall cause such Subsidiary to execute and deliver a Subsidiary Joinder Agreement and such other documentation as the Agent may request to cause such Subsidiary to evidence, perfect, or otherwise implement the guaranty and security for repayment of the Obligations contemplated by a Guaranty, the Subsidiary Security Agreement and, if applicable, a Subsidiary Pledge Agreement.
View Source
Subsidiary Pledge. 38 (c) Borrower Pledge of Subsidiary Stock . . . . . . . . . . . . . . . . . . . . . . . . 38 Section 9.11 ERISA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
View Source

Related to Subsidiary Pledge

  • Equity Pledge 2.1. As collateral security for the timely and complete payment and performance of all Contract Obligations, the Pledgor hereby pledges to the Pledgee a first security interest in all of the Pledgor’s rights, title and interests, whether now owned or hereinafter acquired by the Pledgor, in the Pledged Equity (the “Equity Pledge”). 2.2. The Pledgor shall have been or will be registered at the local branch of State Administration for Industry and Commerce (“SAIC”) as one of the shareholders of the Domestic Company holding his proportion of the equity interests in the Domestic Company as set forth in Recital (A) above and hold such equity interests free and clear of encumbrances except for the Equity Pledge as provided in this Agreement and/or as otherwise agreed by the Parties. 2.3. The Pledgor hereby undertakes that he will be responsible for recording the Equity Pledge on the register of equityholders (if any) of the Domestic Company on the date hereof or as soon as practicable from the date hereof, and will use his best endeavors to register the Equity Pledge with SAIC (the “Registration of Equity Pledge”). In the event the SAIC requires that the Registration of Equity Pledge be completed by using an equity pledge agreement between the Parties substantially in form stipulated by the SAIC, subject to Section 13.5, the Parties shall enter into an equity pledge agreement in such stipulated form (the “Registration Version”) and the Pledgor shall and hereby undertakes that he will use his best endeavors to register the Equity Pledge with SAIC by using the Registration Version. 2.4. During the term of this Agreement, the Pledgee shall not be liable in any way for impairment in value of the Pledged Equity, nor shall the Pledgor have any right to make any claims against the Pledgee for such impairment in value. 2.5. Upon the occurrence of any Breaching Event, the Pledgee shall have the right to dispose of the Pledged Equity in the manner set forth in Article 4 hereof. 2.6. Without the prior written consent of the Pledgee, the Pledgor shall not increase the registered capital of the Domestic Company by contributing additional capital, or allowing any third party to contribute additional capital to the Domestic Company. 2.7. Without the prior written consent of the Pledgee, the Pledgor shall not consent to the adoption of any shareholders’ resolution or by any other means permit the Domestic Company to declare or distribute any dividends or profits. 2.8. Without the prior written consent of the Pledgee, the Pledgor shall not enter into any transactions with the Domestic Company. 2.9. During the term of the Equity Pledge, the Pledgor shall deliver to the Pledgee’s custody the original capital contribution certificate for the Pledged Equity and the original equityholders’ register (if any) containing the Equity Pledge within five business days from the execution of this Agreement or from the completion of any re-registration of shareholding if the percentage of equity interests changes (in such case, the Pledgor shall deliver to the Pledgee’s custody the updated original capital contribution certificates for the Pledged Equity and the updated original equityholders’ register (if any) containing the Equity Pledge). The Pledgee shall take custody of such original documents during the entire term of this Agreement. 2.10. The Pledgee shall have the right to collect dividends or any other distribution paid with respect to the Pledged Equity during the term of this Agreement.

  • No Pledge This Agreement shall not be deemed to represent a pledge of any interest in the Mortgage Loan by the Noteholders. Except as otherwise provided in this Agreement and the Servicing Agreement, no Non-Lead Noteholder shall have any interest in any property taken as security for the Mortgage Loan, provided, however, that if any such property or the proceeds of any sale, lease or other disposition thereof shall be received, then each Non-Lead Noteholder shall be entitled to receive its share of such application in accordance with the terms of this Agreement and/or the Servicing Agreement.

  • Certain Pledges Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement (including under its Note, if any) to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

  • Continuous Pledge Subject to Section 2.4, the Pledgor will, at all times, keep pledged to the Lender pursuant hereto all Pledged Shares and all other shares of capital stock constituting Collateral, all Dividends and Distributions with respect thereto, and all other Collateral and other securities, instruments, proceeds, and rights from time to time received by or distributable to the Pledgor in respect of any Collateral.

  • Stock Pledge Agreement The term "Stock Pledge Agreement" shall have the meaning set forth in Section 6.3(xiii).