Common use of CROSS CHARGE Clause in Contracts

CROSS CHARGE. To secure the due payment of all monies and interest thereon (including interest on overdue amounts) being from time to time owing by a Limited Partner to the others and the performance of its obligations contained in this Agreement, each Limited Partner (hereinafter called the "MORTGAGOR PARTNER") hereby mortgages and charges as and by way of a fixed and specific mortgage and charge and grants a security interest to and in favour of the others (each of which is hereinafter called the "MORTGAGEE PARTNER"), their respective successors, and permitted assigns, in and against all the right, title and interest of the Mortgagor Partner, both present and future, in and to the Partnership Interest owned by such Mortgagor Partner, including distributions to which such Partnership Interest may become entitled pursuant to this Agreement (collectively, the "COLLATERAL"); TO HAVE AND TO HOLD the Collateral and all rights and revenues hereby assigned and all rights hereby conferred to the Mortgagee Partner, its successors and permitted assigns forever, but in trust nevertheless for the uses and purposes and with the powers and authorities and subject to the terms and conditions mentioned and set forth in this Article (the mortgages, charges and security interest hereby constituted being collectively called the "SECURITY"), provided that prior to the occurrence of a Default by a Mortgagor Partner hereunder, the Mortgagor Partner shall have quiet possession of the Collateral, subject to all provisions of this Agreement, but on and after the occurrence of such Default the Mortgagee Partner shall have quiet possession of the Collateral. The Security shall cease to have any force or effect on the Mortgagor Partner ceasing to own a Partnership Interest, the dissolution of the Partnership or on termination of this Agreement, whichever shall first occur and provided always that such occurrence is in accordance with the provisions of this Agreement and applicable law.