Common use of Standing Authority Clause in Contracts

Standing Authority. 5.1 The Client hereby agrees that during the subsistence of this Securities Margin Trading Agreement and regardless of the Client’s indebtedness to Wintone for the time being, Wintone shall be entitled, with the Client’s standing authority, to deal with the Charged Securities which are securities listed or traded on the SEHK or are interests in a collective investment scheme authorized by the SFC, in the following manner: 5.1.1 apply the securities to a securities borrowing and lending agreement; 5.1.2 deposit any of the securities with an authorized financial institution (as defined in the SFO) as collateral for financial accommodation provided to Wintone; or 5.1.3 deposit the securities collateral with (i) a recognized clearing house; or (ii) another intermediary licensed or registered for dealing in securities as collateral for the discharge and satisfaction of Wintone’s settlement obligations and liabilities. 5.2 The Client acknowledges that by granting a standing authority referred to in Clause 5.1 hereof, Wintone shall have the right to pool the Client’s securities and deposit them as collateral for loans and advances. A third party may have right to the Client’s securities which Wintone must satisfy before returning the securities to the Client. This may increase the risk of the Client’s securities, which the Client is prepared to accept. 5.3 The Client may renew or cancel the Client’s standing authority referred to in Clause 5.2 hereof in the manner set out in the authority. Wintone shall remain liable to the Client for the return of equivalent securities to the Client free from encumbrances after full repayment of all outstanding loans under the Facility by the Client. 5.4 The Client further agrees that, with or without the Client’s prior consent, Wintone may deal with any of the Charged Assets which are not securities listed nor traded on the SEHK nor are interests in a collective investment scheme authorized by the SFC, in a manner that is consistent with applicable Market Requirements.