Common use of AVOIDANCE OF SECURITIES Clause in Contracts

AVOIDANCE OF SECURITIES. Any settlement or discharge under this Deed of Guarantee and Undertaking between the Security Agent and the Sponsors shall be conditional upon no security or payment to the Security Agent by the Borrower, the Sponsors or any other person being avoided or set aside or ordered to be refunded or reduced by virtue of any provision or enactment relating to bankruptcy, insolvency or liquidation for the time being in force, and if such condition is not satisfied, the Security Agent shall be entitled to recover from the Sponsors on demand the value of such security or the amount of any such payment as if such settlement or discharge had not occurred.