Acceleration concept Clause Samples

Acceleration concept. The SSA that forms part of the DD includes positions (in clauses 6.1(a) and 8.4(c)) which could result in Aurizon Network being obliged to pay all future rent (i.e. for future years) upon an event of default. This is contrary to the purpose of the SSA, which is to provide a back up to the direction to pay mechanism to secure the obligation to pay rent as and when it falls due. There has been no justification provided for the proposed acceleration of rent payments, and no discussion of this concept in the DD. The QCA should modify the SSA’s drafting to remove the acceleration concept.