Common use of Floating Mortgage Clause in Contracts

Floating Mortgage. 7.1 In the event that Party B mortgages its current and future production equipment, raw materials, semi-finished products or finished products, the Mortgaged Property shall be determined under any one of the following circumstances: A. the debt performance period expires and the creditor’s right of Party A is not realized; B. Party B is announced bankruptcy or cancelled; C. there is any circumstance for realization of Party A’s mortgage right as set forth in sub-clause 8.1. D. there is any other situation which serious affects realization of the creditor’s right of Party A. 7.2 In the event that Party B provides Party A with maximum mortgage guaranty with the foregoing property, other stipulations of this Contract, as well as the stipulations of this Article, shall apply.