Common use of Continuing Nature of Security Clause in Contracts

Continuing Nature of Security. The Security is and will be a continuing security and shall remain in full force and effect, notwithstanding the insolvency or liquidation or incapacity or change in constitution or status of the Company, the other Obligors or any other Person, or any intermediate payment or settlement of account or other matter or thing whatsoever and, in particular, the intermediate satisfaction by the Company, the other Obligors or any other Person of the whole or any part of the Amounts Due. The Security is in addition to, and independent of, any other security interest, or any other security or right or remedy held by or available to the Debenture Holders or the Debenture Trustee and shall neither be merged in, or in any way exclude or prejudice, or be affected by any other security, right of recourse or other right whatsoever (or the invalidity thereof) which the Debenture Holders or the Debenture Trustee may now or at any time hereafter hold or have (or would apart from this security hold or have) as regards the Issuer or any other person in respect of the Debentures. The Security may be enforced against the Issuer without first having recourse to any other rights of the Debenture Holders or the Debenture Trustee, subject to the Issuer’s obligation to create additional security in case of reduction in the security cover. The Issuer hereby undertakes that during the subsistence of the Security created by the Issuer in favour of the Debenture Trustee, the Issuer shall not do or suffer to be done or be party or privy to any act, deed, matter or thing which may, in anywise prejudicially affect the Security and the rights created in favour of the Debenture Trustee.