Common use of Collateralised Net Financial Liability Clause in Contracts

Collateralised Net Financial Liability. In respect of a Signatory who has made a Collateralisation Election, the element of the Net Financial Liability comprising the Net Financial Interest Amount shall be deemed attributed to the Uncollateralised Net Financial Liability, unless the Net Financial Interest Amount exceeds the Uncollateralised Net Financial Liability, in which case such excess portion of the Net Financial Interest Amount shall be deemed attributed to the Collateralised Net Financial Liability.