Common use of Conversion of Floating Charge Clause in Contracts

Conversion of Floating Charge. The Collateral Agent may at any time after an Event of Default and after payment of the Obligations has been demanded from MTIX, by notice in writing to MTIX convert the floating charge hereby created into a fixed charge in respect of such part of the Floating Charged Property as may be specified in such notice and the ability of the Corporation or MTIX to deal in any manner with such part of the Floating Charged Property shall thereupon cease except to the extent otherwise agreed by the Collateral Agent. A floating charge will automatically crystallise and convert into a fixed charge over the relevant Floating Charge Property if a liquidator, administrative receiver, Receiver, administrator or other similar officer is appointed in respect of MTIX or all or a material part of its assets. No floating charge created under this Agreement will automatically crystallise and convert into a fixed charge solely by reason of a moratorium being obtained under section 1A of Schedule A1 of the Insolvency Act (or anything being done with a view to obtaining a moratorium).