Common use of Effectiveness of Security Clause in Contracts

Effectiveness of Security. The obligations of the Guarantor contained in this Guarantee shall be in addition to and independent of any other security or collateral which the Department may now or at any time in the future hold or take (whether from the Contractor, the Guarantor or any other person) for or in respect of the Liabilities or any of them or any other obligations whatsoever and:- shall not operate so as in any way to prejudice, determine, affect or merge in or with any such other security or collateral; and shall not be prejudiced, determined or affected by any such other security or collateral or by any release, reassignment or discharge thereof. The Guarantor confirms that it is not relying on or expecting the Department to obtain and/or enforce any such security or collateral. Any waiver, consent or approval given by the Department in relation to this Guarantee shall only be effective if given in writing and then only for the purpose and upon any terms and conditions on which it is given. The Department may choose when, where, how and how often to exercise each of its rights, powers and remedies as provided by this Guarantee or by law. No failure on the part of the Department to exercise, or any delay on its part in exercising, any such right, power or remedy shall impair the same or operate or be construed as a waiver thereof, nor shall any single, partial or defective exercise of any such right, power or remedy preclude any further or other exercise thereof or the exercise of any other such right, power or remedy. The rights and remedies provided in this Guarantee are cumulative and not exclusive of any rights or remedies provided by law. Without prejudice to the generality of Clause 5.3 above, the Department may make demands under any provision of this Guarantee at any time and from time to time and the making of any demand shall not prevent the making of further demands. If, at any time, any provision of this Guarantee is or becomes illegal, invalid or unenforceable in any respect (or any of the security or collateral intended to be created by or pursuant to this Guarantee is ineffective) under any law of any jurisdiction, such illegality, invalidity, unenforceability or ineffectiveness shall not affect or impair: the legality, validity or enforceability of the remaining provisions or the effectiveness of any of the remaining security or collateral under such law; or the legality, validity or enforceability of such provision or the effectiveness of such security or collateral under the law of any other jurisdiction. Any settlement, release or discharge between the Guarantor and the Department shall (whether or not so expressed) be deemed to be conditional upon no right, security or collateral, disposition or payment granted or made to the Department by the Contractor or the Guarantor or any other person being void, avoided or set aside, either wholly or in part, for any reason whatsoever, including by virtue of any provisions or enactments relating to bankruptcy, insolvency, administration, liquidation or winding up for the time being in force. In the event of the whole or any part of any such right, security, disposition or payment being so void, avoided or set aside, the Department shall be entitled to enforce this Guarantee against the Guarantor subsequently as if such settlement, release or discharge had not occurred and such right, security, disposition or payment (or, as the case may be, the part thereof so void, avoided or set aside) had not been granted or made.