Common use of Collateral Arrangement Clause in Contracts

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