Grant Interest Clause Samples

Grant Interest. To secure the due and punctual payment by each Participant of its proportionate share of Construction Costs and Operating Costs and, where applicable, interest payable under this Agreement and any amounts owing to the Operator under Article 15 or 20, all when the same shall become due and payable, whether under Sections 16.2 or 16.3 or otherwise, each Participant hereby grants a security interest to and in favour of the Operator, or to the other Participants in the case of the security interest granted by the Participant who is the Operator, in: (a) the undivided share of Minerals produced or to be produced from the Property owned or to be owned by that Participant; and (b) the Interest of that Participant. The security interest hereby created shall in no way hinder or prevent a Participant, at any time or from time to time until the security interest hereby constituted shall have become enforceable pursuant to the provisions of Section 19.3, from: (a) selling, assigning, transferring, conveying or otherwise disposing of all or any part of its share of production, free from such charge, in the ordinary course of its business and for the purpose of carrying on the same; provided that any forward sale commitments by a Participant shall be without prejudice to enforcement by the Operator of its security interest in respect of any concentrates which have not at the time been delivered to fill those sales commitments; (b) selling, assigning, conveying, transferring or otherwise disposing of its Interest in accordance with the provisions of Article 25; (c) subject always to compliance with the provisions of Article 11, entering into a security instrument in accordance with that section; provided that any such action is not in breach of any provision of this Agreement.