Common use of THE CHARGE Clause in Contracts

THE CHARGE. 2.2.1 As security for the payment of the Secured Obligations when due in accordance with the PPA, the Procurer as the legal and / or beneficial owner of the Hypothecated Interest does hereby agree to hypothecate on the Charge Creation Date by way of pari pasu charge in favour of the Seller:- all right, title, interest, benefit, claims and demands whatsoever of the Procurer in respect of the Incremental Receivables (collectively, the“Hypothecated Interest”). The charge created pursuant to this Article by the Procurer over the Hypothecated Interest in favour of the Seller shall be a floating charge and subject to Article 3.1.1 of this Agreement, shall not hinder the Procurer from selling, leasing or otherwise disposing of or dealing with the Hypothecated Interest or any part thereof. Provided that, the floating charge created pursuant to this Article shall immediately and automatically be converted into a fixed charge upon the occurrence of any Event of Default as defined in the Default Escrow Agreement. A. on the date of the creation of the pari pasu charge in accordance with Article 2.2.1, this Agreement to Hypothecate Cum Deed of Hypothecation shall be deemed to continue as the Deed of Hypothecation between the Parties in accordance with the terms contained herein. B. At any time after an Event of Default as defined in the Default Escrow Agreement occurs and is continuing, the Seller shall have the authority to act upon and enforce the provisions of this Agreement in accordance with the provisions hereof and the PPA. C. Following the occurrence of an Event of Default as defined in the Default Escrow Agreement, except as may be required under the PPA, the Seller shall not be obliged before taking steps to enforce the Security constituted by or pursuant to this Agreement to: (a) take action or obtain judgement or any arbitration award against the Procurer in any court or before any arbitrator; (b) make or file any claim or proof in a winding up or dissolution of the Procurer; and (c) exercise any legal remedies, which may be available to it under or in respect of the PPA.