Common use of Recourse to Security Clause in Contracts

Recourse to Security. (a) The Holding Party may from time to time have immediate recourse to the Security, and for that purpose may convert into money any Security that does not consist of money, to recover: (1) any moneys which remain unpaid by the Lodging Party under this Agreement when due; (2) any moneys or any claim to moneys that the Holding Party may have against the Lodging Party, whether for damages (including liquidated damages and the Holding Party's estimate of its entitlement to damages for breach of contract) or otherwise; (3) any costs incurred by the Holding Party in having recourse to the Security; and (4) any moneys, costs or other amounts specified as being secured by the Security in the relevant Confirmation. (b) Without limiting clause 8.3(a), the Holding Party may have immediate recourse to the Security: (1) if an Insolvency Event occurs in respect of the Lodging Party; or (2) in any other circumstances specified in the relevant Confirmation.