Common use of Security – General Clause in Contracts

Security – General. The Borrower undertakes the following in respect of the Secured Property: a) The Borrower must sign and deliver any documentation which FFNZ may reasonably require to ensure the perfection of its security referred to in clauses 5.0 and 6.0 and the Borrower agrees to indemnify and hold harmless (and will continue to hold harmless) FFNZ in respect of any costs incurred by FFNZ in registering, perfecting or maintaining such security and/or exercising any rights including any rights FFNZ may have. b) The Borrower must: i) store all goods that are part of the Collateral at the address of the Borrower shown in the Initial Disclosure Statement; ii) care for and maintain and repair any damage to the Secured Property; iii) replace with other Collateral of a similar nature and value any of the Collateral that may be destroyed or lost or may cease to exist; iv) comply with all laws relating to the ownership and use of the Secured Property; and v) allow us to inspect the Secured Property provided we first give you 24 hours’ written notice. c) The Borrower must not: i) do anything that could adversely affect your rights of ownership in the Secured Property; ii) dispose of the Secured Property by way of sale, or gift or lease; iii) allow someone else to have possession of the Secured Property; iv) destroy, damage, endanger or disassemble the Secured Property; v) conceal or hide the Secured Property from FFNZ; vi) grant any other security of the Secured Property or allow any lien to be created over it; vii) take the Secured Property out of New Zealand; and viii) use the Secured Property for any dangerous or illegal activity or for any purpose for which it was not intended. d) If you install or fix anything to any Secured Property then that thing becomes part of the Secured Property and subject to the security granted by you under the Agreement. e) We have the right to take possession of any Collateral if this is required to enable us to perfect our Security Interest. f) If any Collateral has been acquired for business purposes, the Consumer Guarantees Act 1993 does not apply. g) We may, at all reasonable times, either personally or by agents, enter upon your premises to inspect the Secured Property. h) In consideration for the Lender advancing the Initial Unpaid Balance and any further advances to you in the future, the securities granted in the Agreement that concern your present and future accounts receivable, and present and future rights to any accounts receivable, take effect as and will be deemed a transfer of those accounts receivable to us for new value.

Security – General. The Borrower undertakes the following in respect of the Secured Property: a) The Borrower must sign and deliver any documentation which FFNZ may reasonably require to ensure the perfection of its security referred to in clauses 5.0 and 6.0 and the Borrower agrees to indemnify and hold harmless (and will continue to hold harmless) FFNZ in respect of any costs incurred by FFNZ in registering, perfecting or maintaining such security and/or exercising any rights including any rights FFNZ may have. b) The Borrower must: i) store all goods that are part of the Collateral at the address of the Borrower shown in the Initial Disclosure Statement; ii) care for and maintain and repair any damage to the Secured Property; iii) replace with other Collateral of a similar nature and value any of the Collateral that may be destroyed or lost or may cease to exist; iv) comply with all laws relating to the ownership and use of the Secured Property; and v) allow us to inspect the Secured Property provided we first give you 24 hours’ written notice. c) The Borrower must not: i) do anything that could adversely affect your rights of ownership in the Secured Property; ii) dispose of the Secured Property by way of sale, or gift or lease; iii) allow someone else to have possession of the Secured Property; iv) destroy, damage, endanger or disassemble the Secured Property; v) conceal or hide the Secured Property from FFNZ; vi) grant any other security of the Secured Property or allow any lien to be created over it; vii) take the Secured Property out of New Zealand; and viii) use the Secured Property for any dangerous or illegal activity or for any purpose for which it was not intended. d) If you install or fix anything to any Secured Property then that thing becomes part of the Secured Property and subject to the security granted by you under the Agreement. e) We have the right to take possession of any Collateral if this is required to enable us to perfect our Security Interest. f) If any Collateral has been acquired for business purposes, the Consumer Guarantees Act 1993 ▇▇▇▇▇▇▇▇▇▇ ▇▇▇ ▇▇▇▇ does not apply. g) We may, at all reasonable times, either personally or by agents, enter upon your premises to inspect the Secured Property. h) In consideration for the Lender advancing the Initial Unpaid Balance and any further advances to you in the future, the securities granted in the Agreement that concern your present and future accounts receivable, and present and future rights to any accounts receivable, take effect as and will be deemed a transfer of those accounts receivable to us for new value.