Common use of Financial Collateral Clause in Contracts

Financial Collateral. (a) To the extent that the Collateral constitutes “financial collateral” and this Deed and the obligations of a Chargor under this Deed constitute a “security financial collateral arrangement” (in each case, for the purpose of and as defined in the Financial Collateral Arrangements (No. 2) Regulations 2003), the Notes Collateral Agent may (but shall not be obligated to) after this Security has become enforceable appropriate all or any part of that financial collateral in or towards the satisfaction of the Secured Obligations. (b) Where the Notes Collateral Agent appropriates any financial collateral: (i) if it is cash, its value will be the amount standing to the credit of the relevant account plus any accrued but uncredited interest on the date of appropriation; (ii) if it is listed or traded on a recognised exchange, its value will be taken as the value at which it could have been sold on the exchange on the date of appropriation; and (iii) in any other case, its value will be the amount that the Notes Collateral Agent reasonably determines having taken into account advice obtained by it from an independent investment or accountancy firm of national standing selected by it, and each Secured Party will give credit for the proportion of the value of the financial collateral appropriated to its use.

Financial Collateral. (a) To the extent that the Collateral constitutes Charged Assets constitute “financial collateral” and this Deed and the obligations of a Chargor under this Deed constitute a “security financial collateral arrangement” (in each case, for the purpose of and as defined in the Financial Collateral Arrangements (No. 2) Regulations 2003), the Notes Collateral Agent Lender may (but shall not be obligated to) after this Security has become enforceable appropriate all or any part of that financial collateral in or towards the satisfaction of the Secured Obligations. (b) Where the Notes Collateral Agent Lender appropriates any financial collateral: (i) if it is cash, its value will be the amount standing to the credit of the relevant account on the date of appropriation plus any accrued but uncredited interest on the date of appropriationinterest; (ii) if it is listed or traded on a recognised exchange, its value will be taken as the value at amount for which it could have been sold on the exchange on the date of appropriation; and (iii) in any other case, its value will be the amount that the Notes Collateral Agent Lender reasonably determines having taken into account advice obtained by it from an independent investment or accountancy firm of national standing selected by it, and each Secured Finance Party will give credit for the proportion of the value of the financial collateral appropriated to its use.