Common use of Default Risk Clause in Contracts

Default Risk. Where Third Party Security Interests are created there is the risk that where we (or any other person whose obligations are secured by, or set-off against pursuant to, such Third Party Security Interests) defaults on our obligations towards the relevant Third Party, or in other circumstances, including without limitation, where the Third Party anticipates that such obligor may default on its obligations (including, for example, due to the onset or potential onset of insolvency proceedings), then such Third Party may enforce its rights over (or set-off its obligations against) your Custody Assets and, as a consequence, you may lose and not be able to recover such assets from us or from the Third Party, regardless of whether you are in actual or potential default of your obligations to us or any other person.