Use of Security Clause Samples
The 'Use of Security' clause defines how any security provided under an agreement—such as deposits, guarantees, or collateral—may be utilized by the party holding it. Typically, this clause outlines the specific circumstances under which the security can be accessed, such as to cover unpaid obligations, damages, or breaches of contract, and may detail the process for applying the security and any requirements for replenishment. Its core practical function is to clarify the rights and limitations regarding the use of security, thereby protecting both parties by ensuring transparency and reducing disputes over when and how security can be drawn upon.
Use of Security. If, under the terms of this Agreement, the Municipality finds it necessary to draw on any of the securities posted, or the Developer fails to renew any securities or provide additional ones where required, then the Municipality shall have the right to treat the Developer as being in breach of this Agreement and, in addition to any other rights under this Agreement, the Municipality shall be entitled to prohibit any further Pre- Servicing Works being carried out on the Lands until the securities have been restored, renewed or increased as required. Further, the Developer acknowledges that irrespective of the manner in which the amount of the security was calculated, the cash or letter of credit has been lodged to secure all obligations of the Developer and the security may be used to complete any aspect of the Pre-Servicing Works to the exclusion of any other aspect thereof, to return the Lands to their pre-construction state if deemed appropriate, or to fulfill any other obligation under this Agreement, irrespective of the manner in which the original value was calculated or the obligation described.
Use of Security. Con Edison may draw upon the security and/or exercise any and all rights in respect of such security as provided in this Agreement and in the security instrument.
Use of Security. Unless otherwise indicated in this Agreement, including Section 12.2, Buyer shall be entitled to draw upon the Collateral posted by Seller for any obligation of Seller arising under this Agreement that is not paid when due, whether or not an Early Termination Date or other termination of this Agreement in compliance with the terms hereof has been declared. Notwithstanding the foregoing, amounts contained in the Delay Damages Account shall only be drawn upon by Buyer pursuant to Section 5.4(a).
Use of Security. The U.S. trans- feror may be required to furnish a bond or other security that satisfies the re- quirements of § 301.7101–1 if the Area Director, Field Examination, Small Business/Self Employed or the Director of Field Operations, Large and Mid- Size Business (Director) determines that such security is necessary to en- sure the payment of any tax on the gain realized, but not recognized, upon the initial transfer. Such bond or secu- rity generally will be required only if the transferred stock or securities are a principal asset of the U.S. transferor and the Director has reason to believe that a disposition of the stock or secu- rities may be contemplated.
(i) [Reserved]
Use of Security. The Gas Distributor has the right to use, set‐off, appropriate, apply and realize the security, or any part of it, provided to the Gas Distributor by the Gas Vendor upon there occurring an Event of Default of the Gas Vendor under this Agreement or under any Incorporated Agreement by doing any one or more of the following: (i) taking possession of the security and any cash deposits by any method permitted by law; (ii) setting off or otherwise dealing with the security and any cash deposits; (iii) drawing on letters of credit; (iv) demanding payment on guarantees; (v) exercising any and all of the rights and remedies granted pursuant to the Personal Property Security Act (Ontario) and any other applicable legislation, or otherwise available at law or in equity; and (vi) filing such proofs of claim and other documents as may be necessary or advisable in order to have its claim lodged in any bankruptcy, winding‐up or other judicial proceedings relating to the Gas Vendor. No right, power or remedy of the Gas Distributor (whether granted herein or otherwise) shall be exclusive of or dependent on or merge in any other right, power or remedy, but all such rights, powers and remedies may from time to time be exercised independently or in combination. The Gas Vendor shall remain liable for all obligations, indebtedness and liabilities owing by it to the Gas Distributor that are outstanding following realization of all or any part of the security.
Use of Security. Dominion shall be allowed to collect any funds due and owing by ▇▇▇▇▇▇▇▇▇▇▇▇ to Dominion from the performance security provided under this Article 11 that are not paid in a timely manner, and ▇▇▇▇▇▇▇▇▇▇▇▇ shall be obligated to replenish the security after any such withdrawal. ARTICLE 12
Use of Security. The City may draw on the Security to complete work not performed by Developer, to pay liens on the Property, to reimburse itself for costs incurred in the drafting, execution, administration or enforcement of this Development Agreement, to repair or correct deficiencies or other problems which occur during any warranty period, or to otherwise fulfill the obligations of the Developer under this Development Agreement. The City shall not be under any obligation to cure any breach of the terms of this Development Agreement with the proceeds from the Security, but may, at the City's sole option, cure the breach or retain the proceeds from the Security until Developer cures the breach.
Use of Security. Until an Event of Default has occurred and is continuing, MXE may use, commingle and dispose of any part of the Security in the ordinary course of its business (including without limitation making distributions of income and profits), all subject to the provisions of the Documents.
Use of Security. If the Customer fails to pay the Termination Charge in full when required to do so pursuant to the terms of Section 13.5.1, the Company may, in its sole discretion, use the Financial Assurances then held by or for the benefit of the Company free from any claim or right of any nature whatsoever of the Customer, including any equity or right of purchase or redemption by the Customer.
Use of Security. The Company has the right to use, set-off, appropriate, apply and realize the Financial Assurances, or any part of it, provided to the Company by the Customer upon there occurring an Event of Default of the Customer under this Agreement by doing any one or more of the following: (i) taking possession of the security and any cash deposits by any method permitted by law; (ii) setting off or otherwise dealing with the security and any cash deposits; (iii) drawing on letters of credit; (iv) demanding payment on guarantees; (v) exercising any and all of the rights and remedies granted pursuant to the Personal Property Security Act (Ontario) and any other applicable legislation, or otherwise available at law or in equity; and (vi) filing such proofs of claim and other documents as may be necessary or advisable in order to have its claim lodged in any bankruptcy, winding-up or other judicial proceedings relating to the Customer. No right, power or remedy of the Company (whether granted herein or otherwise) shall be exclusive of or dependent on or merge in any other right, power or remedy, but all such rights, powers and remedies may from time to time be exercised independently or in combination. The Customer shall remain liable for all obligations, indebtedness and liabilities owing by it to the Company that are outstanding following realization of all or any part of the security.