Alabama Pledge and Security Agreement regarding the finance of acquisition of shares of common stock

• Category: Corporations - Public - Security
• State: Multi-State
• Control #: US-EG-9314
• Format: Word; Rich Text

Description

Pledge and Security Agreement between James Thorburn and Semiconductor Components Industries, LLC regarding the finance of acquisition of shares of common stock dated November 8, 1999. 5 pages. The Alabama Pledge and Security Agreement is a legally binding document that outlines the terms and conditions for financing the acquisition of shares of common stock in Alabama. It serves as a guarantee to the lender that the borrower will fulfill their financial obligations related to the acquisition. This agreement typically includes details such as the names of the parties involved, the amount of financing provided, the interest rate, repayment terms, and the pledge of the acquired shares as collateral. The purpose is to ensure that the lender has sufficient security in case the borrower defaults on the loan. The Alabama Pledge and Security Agreement may contain different variations depending on the specific terms agreed upon. Some common types include: 1. Traditional Pledge Agreement: This is the most common type wherein the borrower pledges the acquired shares as collateral. It grants the lender the right to take ownership of the pledged shares in case of default, enabling them to recover funds by selling the shares. 2. Floating Lien Agreement: In this type, instead of pledging specific shares, the borrower pledges all of their present and future acquired stock as collateral. It allows the borrower to freely buy and sell shares without the need for further approvals from the lender, as the lien "floats" over their entire stock portfolio. 3. Hybrid Agreement: A hybrid Alabama Pledge and Security Agreement combines elements of both the traditional pledge agreement and the floating lien agreement. It may involve pledging a percentage of acquired shares as collateral while allowing the borrower to float the remaining shares. 4. Over-Advance Agreement: This agreement is used when the lender provides more financing than the acquisition's value. It requires the borrower to pledge additional collateral apart from the acquired shares to cover the over-advanced amount. Keywords: Alabama Pledge and Security Agreement, finance, acquisition, shares of common stock, guarantee, lender, borrower, terms and conditions, collateral, default, traditional pledge agreement, floating lien agreement, hybrid agreement, over-advance agreement.

The Alabama Pledge and Security Agreement is a legally binding document that outlines the terms and conditions for financing the acquisition of shares of common stock in Alabama. It serves as a guarantee to the lender that the borrower will fulfill their financial obligations related to the acquisition. This agreement typically includes details such as the names of the parties involved, the amount of financing provided, the interest rate, repayment terms, and the pledge of the acquired shares as collateral. The purpose is to ensure that the lender has sufficient security in case the borrower defaults on the loan. The Alabama Pledge and Security Agreement may contain different variations depending on the specific terms agreed upon. Some common types include: 1. Traditional Pledge Agreement: This is the most common type wherein the borrower pledges the acquired shares as collateral. It grants the lender the right to take ownership of the pledged shares in case of default, enabling them to recover funds by selling the shares. 2. Floating Lien Agreement: In this type, instead of pledging specific shares, the borrower pledges all of their present and future acquired stock as collateral. It allows the borrower to freely buy and sell shares without the need for further approvals from the lender, as the lien "floats" over their entire stock portfolio. 3. Hybrid Agreement: A hybrid Alabama Pledge and Security Agreement combines elements of both the traditional pledge agreement and the floating lien agreement. It may involve pledging a percentage of acquired shares as collateral while allowing the borrower to float the remaining shares. 4. Over-Advance Agreement: This agreement is used when the lender provides more financing than the acquisition's value. It requires the borrower to pledge additional collateral apart from the acquired shares to cover the over-advanced amount. Keywords: Alabama Pledge and Security Agreement, finance, acquisition, shares of common stock, guarantee, lender, borrower, terms and conditions, collateral, default, traditional pledge agreement, floating lien agreement, hybrid agreement, over-advance agreement.