Reduction of Securities Clause Samples

The Reduction of Securities clause defines the conditions under which the amount or value of securities provided as collateral can be decreased. Typically, this clause allows a party to request a reduction when the secured obligations have been partially fulfilled or when the value of the collateral exceeds the required coverage. For example, if a borrower repays part of a loan, the lender may be required to release a corresponding portion of the pledged assets. The core function of this clause is to ensure that collateral requirements remain proportionate to outstanding obligations, preventing over-collateralization and promoting fairness between the parties.
Reduction of Securities. An application for the reduction of the security on deposit with the Municipality pursuant to Section 4.1 herein may be made upon commissioning of the works. (a) To obtain a reduction in security the Developer shall file with the Municipality’s Engineer a written application. (b) The application shall include written confirmation from the Developer’s Engineer: • describing the Works constructed as at the date of the application and a calculation of the cost thereof. • confirming that the Works have been installed by the Developer with full time supervision of municipal watermain construction by the Developer’s Engineer and in accordance with the requirements of this Agreement and schedules hereto. • describing the Works remaining to be completed as at the date of the application and a calculation of the estimated cost thereof. (c) The value of the reduction shall be determined by the Municipality’s Engineer who shall give a certificate to the Municipal Clerk and the Developer confirming the amount of the reduction of the security and the amount of the security remaining on deposit with the Municipality. (d) The value of the reduction shall be based upon the value of the Works remaining to be completed by the Developer plus ten percent (10%) of the value of the Works completed to the date of the application. (e) Subject to any outstanding deficiencies or contingencies, the Municipality throughout the maintenance period shall hold as security the greater of ten percent (10%) of the Developer’s share of the estimate of the Works or ten thousand dollars ($10,000.00).
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Reduction of Securities. An application for the reduction of the security on deposit with the Town pursuant to Section 9.2 herein may be made no earlier than thirty (30) days after the commencement of construction of the Works and every thirty (30) clear days thereafter. (a) To obtain a reduction in security the Developer shall file with the Town’s Engineer a written application in accordance with Schedule “J” attached hereto. (b) The application shall include written confirmation from the Developer’s Engineer: • describing the Works constructed as at the date of the application and a calculation of the cost thereof. • confirming that the Works have been installed by the Developer with full time supervision of the Developer’s Engineer and in accordance with the requirements of this Agreement and schedules hereto. • describing the Works remaining to be completed as at the date of the application and a calculation of the estimated cost thereof. (c) The value of the reduction shall be determined by the Town’s Engineer who shall give a certificate to the Municipal Clerk and the Developer confirming the amount of the reduction of the security and the amount of the security remaining on deposit with the Town. (d) The value of the reduction shall be based upon the one hundred percent (100%) of the value of the Works remaining to be completed by the Developer plus ten percent (10%) of the value of the Works completed to the date of the application. Should Final Acceptance be granted for any Stage or Stages of the works, then the reduction shall be based upon one hundred percent (100%) of the value of the Works remaining to be completed by the Developer plus ten percent (10%) of the value of the Works for those Stages of construction that have not received Final Acceptance to the date of the application (e) As a minimum security, subject to any outstanding deficiencies or contingencies, the Town throughout the maintenance period shall hold as security the greater of ten percent (10%) of the estimate of the cost of the Works as set out in Schedule “E” or twenty thousand dollars ($20,000.00).
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Related to Reduction of Securities

  • Valuation of Securities Securities shall be valued in accordance with (a) the Fund's Registration Statement, as amended or supplemented from time to time (hereinafter referred to as the "Registration Statement"); (b) the resolutions of the Board of Trustees of the Fund at the time in force and applicable, as they may from time to time be delivered to FUND ACCOUNTING, and (c) Proper Instructions from such officers of the Fund or other persons as are from time to time authorized by the Board of Trustees of the Fund to give instructions with respect to computation and determination of the net asset value. FUND ACCOUNTING may use one or more external pricing services, including broker-dealers, provided that an appropriate officer of the Fund shall have approved such use in advance.

  • Evaluation of Securities The Trustee shall determine separately and promptly furnish to the Depositor upon request the value of each issue of the Securities in the Trust as of the Evaluation Time on each of the days on which the Trustee shall make the Trust Evaluation required by Section 5.1. The value of each issue of Securities shall be determined in good faith by the Trustee in accordance with the following procedures: If the Securities are listed on a national or foreign securities exchange, such valuation shall be based on the closing sale price on such exchange which is the principal market thereof, deemed to be the New York Stock Exchange if the Securities are listed thereon (unless the Trustee deems such price inappropriate as a basis for valuation). If the Securities are not so listed, or, if so listed and the principal market therefor is other than such exchange or there is no closing sale price on such exchange, such valuation shall be based on the closing sale price in the over-the-counter market (unless the Trustee deems such price inappropriate as a basis for valuation) or if there is no such closing sale price, then the Trustee may utilize, at the Trust’s expense, an independent evaluation service or services approved by the Depositor to ascertain the values of the Securities. The independent evaluation service shall use any of the following methods, or a combination thereof, which it deems appropriate: (a) on the basis of current bid prices of such Securities as obtained from investment dealers or brokers (including the Depositor) who customarily deal in securities comparable to those held by the Trust, or (b) if bid prices are not available for any of such Securities, on the basis of bid prices for comparable securities, or (c) by appraisal of the value of the Securities on the bid side of the market or by such other appraisal as is deemed appropriate, or (d) by any combination of the above. As used herein, the closing sale price is deemed to mean the most recent closing sale price on the relevant securities exchange prior to the Evaluation Time. The Trustee shall be permitted to rely on these evaluations when determining the Unit Value. The Trustee shall have no responsibility or liability for the valuations supplied to it by the independent evaluation service. The Trustee shall also make an evaluation of the Securities deposited in the Trust as of the time said Securities are deposited under this Indenture pursuant to Section 2.1. Such evaluation shall be made on the same basis as set forth above and shall be included in the Schedules attached to the Reference Trust Agreement. If the Trust holds Securities denominated in a currency other than U.S. dollars, the evaluation of such Security shall be converted to U.S. dollars based on current offering side exchange rates (unless the Trustee deems such prices inappropriate as a basis for valuation).”

  • REDEMPTION OF SECURITIES SECTION 1101.

  • Acceleration of Securities If payment of the Securities is accelerated because of an Event of Default, the Company shall promptly notify holders of Senior Debt of the acceleration.

  • SUBSTITUTION OF SECURITIES Upon request and at the sole cost and expense of Contractor, District shall permit substitution of securities in lieu of retention, in accordance with Public Contract Code Section 22300.