Common use of Continuation of accounts Clause in Contracts

Continuation of accounts. (a) At any time after a Secured Party II has received or is deemed to have received notice of any subsequent Security affecting all or any part of the Security Assets II of the Assignor, that Secured Party II may open a new account in the name of the Assignor (whether or not it permits any existing account to continue). (b) If that Secured Party II does not open such a new account, it shall be treated as if it had done so when the relevant notice was received or deemed to have been received and as from that time all payments made by or on behalf of the Assignor to that Secured Party II shall be credited or be treated as having been credited to the relevant new account and not as having been applied in reduction of the Secured Liabilities II as at the time the relevant notice was received or deemed to have been received.

Continuation of accounts. (a) At any time after a Secured Party II I has received or is deemed to have received notice of any subsequent Security affecting all or any part of the Security Assets II I of the Assignor, that Secured Party II I may open a new account in the name of the Assignor (whether or not it permits any existing account to continue). (b) If that Secured Party II I does not open such a new account, it shall be treated as if it had done so when the relevant notice was received or deemed to have been received and as from that time all payments made by or on behalf of the Assignor to that Secured Party II I shall be credited or be treated as having been credited to the relevant new account and not as having been applied in reduction of the Secured Liabilities II I as at the time the relevant notice was received or deemed to have been received.