Common use of Assignment by way of Security Clause in Contracts

Assignment by way of Security. 3.1 As further security for the payment of the Secured Liabilities the Issuer assigns and agrees to assign to the Trustee for the benefit of the Trustee and the Relevant Security Holders by way of security with full title guarantee all its present and future rights, title and interest in each Assigned Agreement, provided that such assignment shall take effect subject to any set-off expressly permitted under the Facility Agreement between the amounts payable under such Facility Agreement and provided further that unless and until the Security is exercised in accordance with the provisions of this Deed, the Issuer may continue to exercise all its powers under each Assigned Agreement in relation to the following matters: 3.1.1 all matters expressed in the Assigned Agreement to be at the option, or subject to the discretion, of the Issuer and the relevant Commodity Contract Counterparty; and 3.1.2 in relation to an Assigned Agreement: (a) which is a Facility Agreement, all matters relating to the day to day management of the creation or redemption of Commodity Contracts under the Assigned Agreement that require the agreement of the relevant Commodity Contract Counterparty and the Issuer, but which do not relate to the payment obligations of either party under the Assigned Agreement; (b) which is a Security Agreement, all matters relating to the calculation of “Value” and “Exposure” under the Assigned Agreement including the provisions relating to resolving disputes in respect thereof and exercising its rights and remedies thereunder and making of demands thereunder; and