Common use of Cash Security Clause in Contracts

Cash Security. 4.1 Subject to Clause 4.2, as security for its obligations under Clause 3 above, the Company undertakes that by no later than 11a.m. on the proposed date of issue of a Bond by the Issuing Bank, it shall deposit, in the Relevant Currency, an amount equal to the Outstanding Liability Amount in respect of such Bond (each such sum, a "DEPOSIT") in the Relevant Account. 4.2 If the Payment Currency of a Bond is not an Approved Currency (a "FOREIGN CURRENCY BOND"), the relevant Deposit shall be an amount sufficient to ensure that the Account Balance (including the amount of such Deposit) of the Dollar Account, after deducting an amount equal to the aggregate of the Outstanding Liability Amount of each Bond issued by the Issuing Bank for which the Payment Currency is US Dollars, equals at least 105 per cent of the Dollar Equivalent (as at the proposed Issue Date of the Relevant Bond) of the aggregate of the Outstanding Liability Amount of each Foreign Currency Bond issued by the Issuing Bank (including the Bond to be issued on the proposed Issue Date). 4.3 The Company may at any time request that any currency be treated as an Approved Currency. If the Issuing Bank agrees (in its sole discretion) to such request, an account in such currency shall be opened with the Issuing Bank (a "NEW CURRENCY ACCOUNT"). Any Deposit in respect of a Bond denominated in such currency shall be paid into the relevant New Currency Account in accordance with Clause 4.1. 4.4 Without prejudice to Clause 5 below, the terms and conditions relating to each Deposit and the Accounts shall be governed by the Security over Cash Agreement.