Acknowledgment and Consent to LLC Pledge

Summary

This template is an Acknowledgment and Consent to Limited Liability Company Pledge and is attached to a pledge agreement in which a loan party grants a lien in the membership interests of its subsidiary (the issuer). This template includes practical guidance and drafting notes. Issues arising from an assignment of membership interests in a limited liability company, such as restrictions on assignment or availability of remedies to the secured party, can be avoided with the execution of this acknowledgment and consent. This template should be attached as an exhibit to the Pledge Agreement, which should be read in conjunction with this template. This template has express consents to allow the secured party to become a member of the issuer after an event of default. As these provisions are part of the pledge agreement, all capitalized terms have the meanings ascribed to them in that pledge agreement (unless otherwise defined). For a full listing of key content covering perfecting collateral in limited liability company (LLC) and limited partnership (LP) ownership interests, see LLC and Partnership Interests Security Interests. For a full listing of key content for in-house counsel and corporate secretaries when performing corporate functions, see In-House Corporate Secretary Resource Kit. For a full listing of key content covering mezzanine financing, see Mezzanine Financing (Commercial Real Estate) Resource Kit. For a full listing of key content covering commercial real estate, see First Year Associate Resource Kit: Real Estate. For a full listing of key content that provides an overview of the creation, perfection, and priority of security interests under the Uniform Commercial Code (UCC), see Security Interests Resource Kit.