Common use of Margin Accounts Clause in Contracts

Margin Accounts. All Margin Accounts shall be kept with ABN Amro (“Broker”) unless the Agent shall otherwise consent in writing. Borrower represents and warrants to the Agent that: (a) Borrower is now the owner, free and clear of all liens, security interests and encumbrances, except for those in favor of the Agent or Broker, of any and all Margin Accounts which are listed in any financial statements or books and records of Borrower as being the property of Borrower; and (b) except as otherwise permitted by this Agreement, Borrower owns no open futures positions which are not either covered by existing, unsold Inventory or covered by reciprocal contracts for future delivery of the product by reliable sellers, or directly related to Inventory which Borrower plans to purchase in the ordinary course of Borrower’s business. Concurrently with the execution of this Agreement, Borrower, the Broker and the Agent have executed an Assignment of Commodity Accounts and Commodity Contracts. With respect to any Margin Account opened after the date of this Agreement, Borrower, the Broker and the Agent shall execute an Assignment of Commodity Accounts and Commodity Contracts, in a standard form reasonably acceptable to the Agent and the Broker. All of the Agent’s rights under such Assignment of Commodity Accounts and Commodity Contracts shall be in addition to the Agent’s rights hereunder, and shall also apply to any Margin Accounts that are maintained, in violation of this Agreement, with any Person other than the Broker, provided, however, the Agent shall not exercise any rights, powers or remedies under any Assignment of Commodity Accounts and Commodity Contracts except upon and during the continuance of a Matured Default. Borrower warrants that the Margin Accounts will be used solely for the hedging of Borrower’s investments in Inventory and not for speculative purposes.

Margin Accounts. All Margin Accounts shall be kept with ABN Amro F▇ ▇▇▇▇▇ and R.▇. ▇’▇▇▇▇▇ (collectively, “Broker”) unless the Agent shall otherwise consent in writing. Borrower represents and warrants to the Agent that: (a) Borrower is now the owner, free and clear of all liens, security interests and encumbrances, except for those in favor of the Agent or Broker, of any and all Margin Accounts which are listed in any financial statements or books and records of Borrower as being the property of Borrower; and (b) except as otherwise permitted by this Agreement, Borrower owns no open futures positions which are not either covered by existing, unsold Inventory or covered by reciprocal contracts for future delivery of the product by reliable sellers, or directly related to Inventory which Borrower plans to purchase in the ordinary course of Borrower’s business. Concurrently with the execution of this Agreement, Borrower, the Broker and the Agent have executed an Assignment of Commodity Accounts and Commodity Contracts. With respect to any Margin Account opened after the date of this Agreement, Borrower, the Broker and form of which is attached as Exhibit 5D which covers all Margin Accounts maintained by the Agent shall execute an Assignment of Commodity Accounts and Commodity Contracts, in a standard form reasonably acceptable to the Agent and Borrower with the Broker. All of the Agent’s rights under such Assignment of Commodity Accounts and Commodity Contracts shall be in addition to the Agent’s rights hereunder, and shall also apply to any Margin Accounts that are maintained, in violation of this Agreement, with any Person other than the Broker, provided, however, the Agent shall not exercise any rights, powers or remedies under any Assignment of Commodity Accounts and Commodity Contracts except upon and during the continuance of a Matured Default. Borrower warrants that the Margin Accounts will be used solely for the hedging of Borrower’s investments in Inventory and not for speculative purposes.