Common use of PRIOR SECURITY INTERESTS Clause in Contracts

PRIOR SECURITY INTERESTS. (a) In addition to the Mortgagee’s powers under Clause 9.3 (Mortgagee’s powers), the Mortgagee may: (i) redeem any prior Security Interest against any Collateral; (ii) procure the transfer of the Security Interest to it; or (iii) settle and pass the accounts of the holder of the Security Interest, and those accounts will be, in the absence of manifest error, conclusive and binding on the Mortgagor. (b) The Mortgagor must pay the Mortgagee, immediately on demand, any reasonable and documented out-of-pocket cost or expense (including any principal or interest) incurred by it in connection with any redemption or transfer.