Common use of Moveable Property Clause in Contracts

Moveable Property. (a) A Foreign Note Party shall grant security over its moveable property, subject to the general principles in these Agreed Security Principles. (b) No security over inventory needs to be granted by a Foreign Note Party if no security needs to be granted under the ABL Facility. (c) Until an Applicable Event has occurred and is continuing and to the extent permitted under the Note Documents, the Foreign Note Party providing the security is permitted to dispose of and use its moveable assets in accordance with the terms of the Indenture. (d) If the granting of effective security over moveable assets gives rise to registration costs or similar taxes or costs, the secured amount under such security will be proportionate to the value of the underlying moveable asset (together with such buffer as may be reasonably agreed by the Notes Collateral Agent with the Company to reflect the fluctuating nature of the asset class), and ‘mandates’ to grant security will be granted where customary.