Common use of Disposal of the Collateral Clause in Contracts

Disposal of the Collateral. 1. As long as the mortgage continues to exist, Party A shall not donate, transfer, lease, mortgage repeatedly, remove or otherwise dispose of the collateral under this Contract without Party B’s written consent. 2. As long as the mortgage continues to exist, Party A shall obtain Party B’s written consent in advance of its disposal of the collateral. Party A agrees that Party B shall have the right to select any of the following methods to handle the proceeds from the disposal of the collateral: (1) to pay off or pay off in advance the principal and interest and relevant expenses under the Master Contract; (2) to convert them into fixed-term deposit and pledge the certificate of deposit; (3) to submit them to a third party designated by Party B; (4) to dispose of the proceeds at Party B’s own discretion after Party A provides new security as required by Party B.