Lien Law Clause Application
Summary
The Lien Law clause in a loan security agreement is applicable when the collateral includes accounts or general intangibles related to contracts for improving real property or public improvements in New York. This ensures that any funds advanced by the secured party are held in trust and used to pay trust claims as defined by the New York Lien Law. This clause is relevant in form loan documents for revolving lines of credit if such collateral is involved.Full Conversation
It is in form loan documents for revolving lines of credit, would it apply?
This clause would apply if the collateral includes accounts or general intangibles related to contracts for improving real property or public improvements in New York. It ensures funds advanced are held in trust and used to pay trust claims as defined by the New York Lien Law.
Do you have a specific situation involving such collateral in your loan documents?
TRY ME!
Start a new chat