Delaware 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. Delaware Pledge and Security Agreement is a legal document that pertains to the finance of acquiring shares of common stock. It serves as a form of collateral that ensures the lender's security in the event of default by the borrower. This agreement is commonly used in corporate finance transactions where the acquisition of shares is funded through loans or other forms of debt financing. The Delaware Pledge and Security Agreement outlines the terms and conditions of the pledge arrangement, which involves the borrower granting a security interest in their acquired shares to the lender. This means that the lender holds a security interest in the shares until the borrower repays the loan amount in full. By pledging the shares as collateral, the lender has the right to seize and sell them in the event of a default. Furthermore, the agreement also includes provisions regarding the borrower's obligations, such as interest payments, repayment terms, and restrictions on transferring or encumbering the pledged shares without the lender's consent. It may also specify the consequences of any breach of the agreement, including potential legal actions that the lender can take to recover the outstanding loan amount. Different types of Delaware Pledge and Security Agreement may exist depending on the specifics of the finance arrangement. They can include: 1. Traditional Delaware Pledge and Security Agreement: This is the standard form whereby the borrower pledges the acquired shares as collateral to secure the loan. 2. Floating Lien Delaware Pledge and Security Agreement: This type allows for a floating lien on the pledged shares. This means that the borrower can acquire additional shares after entering into the agreement without having to amend the security interest each time new shares are acquired. 3. Part Pass Delaware Pledge and Security Agreement: In this variant, multiple lenders can have a share in the security interest over the pledged shares on a pro rata basis. This type of arrangement is commonly seen in syndicated loan agreements. In summary, the Delaware Pledge and Security Agreement is a crucial legal document in finance transactions involving the acquisition of common stock. It serves as protection for lenders, allowing them to recover their investment by seizing and selling the pledged shares if the borrower defaults. Understanding the specifics of different types of Delaware Pledge and Security Agreement is essential in choosing the appropriate agreement for a given finance arrangement.

Delaware Pledge and Security Agreement is a legal document that pertains to the finance of acquiring shares of common stock. It serves as a form of collateral that ensures the lender's security in the event of default by the borrower. This agreement is commonly used in corporate finance transactions where the acquisition of shares is funded through loans or other forms of debt financing. The Delaware Pledge and Security Agreement outlines the terms and conditions of the pledge arrangement, which involves the borrower granting a security interest in their acquired shares to the lender. This means that the lender holds a security interest in the shares until the borrower repays the loan amount in full. By pledging the shares as collateral, the lender has the right to seize and sell them in the event of a default. Furthermore, the agreement also includes provisions regarding the borrower's obligations, such as interest payments, repayment terms, and restrictions on transferring or encumbering the pledged shares without the lender's consent. It may also specify the consequences of any breach of the agreement, including potential legal actions that the lender can take to recover the outstanding loan amount. Different types of Delaware Pledge and Security Agreement may exist depending on the specifics of the finance arrangement. They can include: 1. Traditional Delaware Pledge and Security Agreement: This is the standard form whereby the borrower pledges the acquired shares as collateral to secure the loan. 2. Floating Lien Delaware Pledge and Security Agreement: This type allows for a floating lien on the pledged shares. This means that the borrower can acquire additional shares after entering into the agreement without having to amend the security interest each time new shares are acquired. 3. Part Pass Delaware Pledge and Security Agreement: In this variant, multiple lenders can have a share in the security interest over the pledged shares on a pro rata basis. This type of arrangement is commonly seen in syndicated loan agreements. In summary, the Delaware Pledge and Security Agreement is a crucial legal document in finance transactions involving the acquisition of common stock. It serves as protection for lenders, allowing them to recover their investment by seizing and selling the pledged shares if the borrower defaults. Understanding the specifics of different types of Delaware Pledge and Security Agreement is essential in choosing the appropriate agreement for a given finance arrangement.