Common use of Collateral Arrangement Clause in Contracts

Collateral Arrangement. As a further support for Buying Entity’s obligations, on or prior to the Effective Date, Buying Entity and Buyer shall execute Default Escrow Agreement (referred as “Default Escrow Agreement”) for the establishment and operation of the Default Escrow Account in favour of Buyer, through which the revenues of Buying Entity shall be routed and used as per the terms of the Default Escrow Agreement. Buying Entity and Buyer shall contemporaneously with the execution of the Default Escrow Agreement enter into the Agreement to Hypothecate Cum Deed of Hypothecation, whereby Buying Entity shall agree to hypothecate, Incremental Receivables to the extent as required for the Letter of Credit as per Article 6.4.2,. The Default Escrow Agreement and the Agreement to Hypothecate Cum Deed of Hypothecation are collectively referred to as the “Collateral Arrangement”. Provided that Buying Entity shall ensure that Buyer shall have first ranking charge on the Incremental Receivables in accordance with the terms of the Agreement to Hypothecate Cum Deed of Hypothecation.

Collateral Arrangement. As a further support for the Buying EntityUtility’s obligations, on or prior to the Effective Date, the Buying Entity Utility and Buyer SECI shall execute Default Escrow Agreement (referred as “Default Escrow Agreement”) for the establishment and operation of the Default Escrow Account in favour of BuyerSECI, through which the revenues of the Buying Entity Utility shall be routed and used as per the terms of the Default Escrow Agreement. The Buying Entity Utility and Buyer SECI shall contemporaneously with the execution of the Default Escrow Agreement enter into the Agreement to Hypothecate Cum Deed of Hypothecation, whereby the Buying Entity Utility shall agree to hypothecate, Incremental Receivables to the extent as required for the Letter of Credit as per Article 6.4.2,. The Default Escrow Agreement and the Agreement to Hypothecate Cum Deed of Hypothecation are collectively referred to as the “Collateral Arrangement”. Provided that the Buying Entity Utility shall ensure that Buyer SECI shall have first ranking charge on the Incremental Receivables in accordance with the terms of the Agreement to Hypothecate Cum Deed of Hypothecation.