Common use of Assignment as Security Clause in Contracts

Assignment as Security. (a) Network User must not grant any mortgage, charge, encumbrance or security interest over this agreement without the prior written consent of TasNetworks (which will not be unreasonably withheld). (b) If requested by Network User, TasNetworks will (at the cost of Network User) negotiate in good faith the terms of a tripartite agreement between Network User, TasNetworks and any proposed financiers to Network User, provided those financiers are solvent and reputable. However nothing in this clause 21.5(b) requires TasNetworks to agree to a provision which it (acting reasonably) considers increases its risk (as compared to the level of risk under this agreement) or which may adversely affect power system security.

Assignment as Security. (a) Network User must not grant any mortgage, charge, encumbrance or security interest over this agreement without the prior written consent of TasNetworks (which will not be unreasonably withheld). (b) If requested by Network User, TasNetworks will (at the cost of Network User) negotiate in good faith the terms of a tripartite agreement between Network User, TasNetworks and any proposed financiers to Network User, provided those financiers are solvent and reputable. However nothing in this clause 21.5(b18.5(b) requires TasNetworks to agree to a provision which it (acting reasonably) considers increases increase its risk (as compared to the level of risk under this agreement) or which may adversely affect power system security.