Montana Domestic Subsidiary Security Agreement is a legal document that outlines the terms and conditions for securing the loans provided by lenders to a domestic subsidiary company in Montana. This agreement ensures that the lenders and the agent have equal and proportionate benefits or rights in case of default or foreclosure. Under this agreement, the domestic subsidiary company pledges its assets, including tangible and intangible property, stocks, shares, inventories, accounts receivable, and any other collateral, as security for the loans provided by the lenders. This agreement aims to protect the lenders' interests by allowing them to recover their investment in the event of default or bankruptcy. The key aspect of the Montana Domestic Subsidiary Security Agreement is the eatable benefit provision, which ensures that the lenders and agent receive equal shares or benefits from the collateral's liquidation proceeds. Eatable benefit means that each lender's portion of the loan is distributed in proportion to their total investment or exposure to the subsidiary company. This type of agreement provides a fair and equitable distribution of proceeds among the lenders and agent, helping to resolve any conflicts or disputes that may arise during the liquidation process. The eatable benefit provision also promotes transparency and cooperation among the lenders and agent. There are different types or variations of Montana Domestic Subsidiary Security Agreements regarding the eatable benefit of lenders and agent, depending on the specific requirements and preferences of the parties involved. Some common types include: 1. Uniform Eatable Benefit Agreement: This agreement ensures that each lender and the agent shares the proceeds in equal proportion to their investment. It provides a straightforward and simple distribution method. 2. Pro Rata Eatable Benefit Agreement: In this type of agreement, each lender's share is determined based on their pro rata share of the subsidiary company's existing loans. It takes into account the relative size or exposure of each lender. 3. Priority Eatable Benefit Agreement: This agreement establishes a predetermined hierarchy among the lenders and agent, outlining their priority in receiving the liquidation proceeds. It may allocate a certain percentage to each category before redistributing the remaining amount proportionally. 4. Floating Eatable Benefit Agreement: This flexible agreement allows the eatable benefit to vary based on the subsidiary company's financial condition, ensuring that each lender's share is adjusted accordingly. It provides greater flexibility in adapting to changing circumstances. It is vital to consult legal professionals or experts when drafting or entering into a Montana Domestic Subsidiary Security Agreement, as the specific terms and provisions can vary based on individual circumstances and preferences.