Common use of Restricted Accounts Clause in Contracts

Restricted Accounts. Notwithstanding clause 11.2(b) or any other provisions of this agreement prohibiting the opening or maintenance of accounts or the granting or existence of Encumbrances, but otherwise subject to this agreement, the Obligors may: (a) open and maintain accounts for the purposes of obtaining surety bonds, performance bonds, letters of credit, bank guarantees and other similar instruments (each a Performance Bond) and for cash collateralising those instruments (each such account being a Restricted Account); and (b) grant Encumbrances over those Restricted Accounts in favour of the provider of any such Performance Bond and each such Restricted Account shall be excluded from the Secured Property; provided that the Obligors shall not grant any other Encumbrances over those Restricted Accounts, other than Permitted Encumbrances, provided that: (c) the aggregate liability of the Obligors in respect of all such Performance Bonds must constitute Permitted Financial Indebtedness under paragraph 7 of the definition of Permitted Financial Indebtedness; and (d) each Encumbrance in respect of cash collateral provided in respect of all such Performance Bonds must constitute a Permitted Encumbrance under paragraph 5(g) of the definition of Permitted Encumbrance.

Restricted Accounts. Notwithstanding clause 11.2(b11.1(c) or any other provisions of this agreement prohibiting the opening or maintenance of accounts or the granting or existence of Encumbrances, but otherwise subject to this agreement, the Obligors may: (a) open and maintain accounts for the purposes of obtaining surety bonds, performance bonds, letters of credit, bank guarantees and other similar instruments (each a Performance Bond) and for cash collateralising those instruments (each such account being a Restricted Account); and (b) grant Encumbrances over those Restricted Accounts in favour of the provider of any such Performance Bond and each such Restricted Account shall be excluded from the Secured Property; provided that the Obligors shall not grant any other Encumbrances over those Restricted Accounts, other than Permitted Encumbrances, provided that: (c) the aggregate liability of the Obligors in respect of all such Performance Bonds must constitute Permitted Financial Indebtedness under paragraph 7 8 of the definition of Permitted Financial Indebtedness; and (d) each Encumbrance in respect of cash collateral provided in respect of all such Performance Bonds must constitute a Permitted Encumbrance under paragraph 5(g) of the definition of Permitted Encumbrance.