Common use of Collateral Requirement Clause in Contracts

Collateral Requirement. The Valuation Agent agrees to contact the Custodian (and the Custodian agrees to promptly furnish such information) on the last day that each Collateral Requirement is required to be satisfied to verify the satisfaction of same by the Pledgor and to immediately notify the Pledgor and the Pledgee in the manner described in Section 2.7(a) of the Pledgor's failure to satisfy the Collateral Requirement. The Pledgor's failure to satisfy the Collateral Requirement shall result in the Pledgee having the immediate right to the Certificate Collateral and Account Funds in accordance with Section 6.1.