Common use of Operation of the Account Clause in Contracts

Operation of the Account. 6.1. Prior to the occurrence of a Declared Default which is continuing, the Accounts shall not be blocked and the Pledgor shall be authorised to freely manage and operate the Accounts (including but not limited to disposing of the Pledged Assets and opening and closing Accounts). The Pledgee shall not be entitled to operate the Accounts during this period. 6.2. After the occurrence of a Declared Default which is continuing, the authorisation referred to in Clause 6.1 may, at any time, be revoked by the Pledgee by giving written notice to the Bank, substantially in the form set out in Schedule 3 (the “Blocking Notice”); the revocation shall become automatically effective upon receipt of the Blocking Notice by the Bank. Upon the blocking of the Accounts, the Pledgor and the Pledgee agree that the Bank shall not act upon any instructions of the Pledgor and shall act only upon instructions of the Pledgee.