What is springing collateral?

What is springing collateral?

Springing Collateral means any assets other than Initial Collateral and Additional Collateral of the Company or any of its Restricted Subsidiaries that are affirmatively pledged pursuant to the Credit Agreement as collateral for Indebtedness of the Company or a Subsidiary Guarantor incurred under the Credit Agreement …

What does a floating lien mean?

A security interest in a group of property that remains in place even after the exact items in that group of property change. Thus, a business can obtain loans and provide as the collateral a general security interest in its inventory or accounts receivable.

What is a floating lien example?

For example, if a company takes out a mortgage on a building, the mortgage is a fixed charge, and the business cannot sell, transfer or dispose of the underlying asset—the building—until it repays the loan or meets other conditions outlined in the mortgage contract.

What is a springing deposit account control agreement?

The more common “springing” control agreement provides that the borrower can access the deposit account(s) until the lender delivers a notice of exclusive control to the depository bank. Generally, such a notice can be given by the lender only if the borrower is in default under the underlying loan.

What is a non springing DACA?

Depending on the terms of the DACA, the borrower may or may not have direct access to the funds in the account. In “non-invoked” or “springing” DACAs, borrowers may access the funds; in “invoked” or “blocked” DACAs, borrowers may not.

What is a fixed and floating charge?

A fixed charge is a charge or mortgage secured on particular property, e.g. land and buildings, a ship, piece of machinery, shares, intellectual property such as copyrights, patents, trade marks, etc. A floating charge is a particular type of security, available only to companies.

What is a security control agreement?

The securities account control agreement enables the secured party to obtain control over the security entitlement, and therefore the securities account, and so enables its security interest in the securities account to be perfected (UCC § 9-106).

Does bank of America give loans to DACA?

Can DACA recipients get bank loans for school? DACA program beneficiaries don’t qualify for federal financial aid or federal student loans. Depending on your state residency status, certain states like California, Connecticut, and Minnesota have financial aid programs specifically for Dreamers.

What does perfecting security interest mean?

A perfected security interest is any secure interest in an asset that cannot be claimed by any other party. The interest is perfected by registering it with the appropriate statutory authority, so that it is made legally enforceable and any subsequent claim on that asset is given a junior status.