Common use of Subsequent Liens Clause in Contracts

Subsequent Liens. If the Agent or any other Beneficiary receives, or is deemed to be affected by, notice, whether actual or constructive, of any Lien (other than a Lien which is permitted under the terms of the Finance Documents) affecting the Collateral and/or the proceeds of sale thereof, the Agent or such other Beneficiary may open a new account or accounts for the Chargor in its books. If the Agent or such other Beneficiary does not open a new account, it shall nevertheless be treated as if it had done so at the time when it received or was deemed to have received notice (unless it gives express notice to the contrary to the Chargor). As from that time all payments made to the Agent or such other Beneficiary will (in the absence of any express appropriation to the contrary) be credited or be treated as having been credited to the new account and will not operate to reduce the Secured Obligations.