Payments by Security Trustee Clause Samples
The 'Payments by Security Trustee' clause defines the responsibilities and procedures for the security trustee when distributing funds it receives in connection with secured obligations. Typically, this clause outlines how the trustee must allocate and transfer payments, such as proceeds from the enforcement of security interests, to the appropriate creditors or beneficiaries according to a specified order of priority. By establishing clear rules for the handling and distribution of funds, this clause ensures transparency and fairness among parties, and helps prevent disputes over payment entitlements.
Payments by Security Trustee. If default shall be made by the Chargor in complying with, or performing, or discharging, any of its undertakings, obligations or liabilities hereunder, then without prejudice to any other rights or remedies which the Security Trustee may have hereunder against the Chargor, it shall be lawful for, but not incumbent upon, the Security Trustee to perform or discharge the same on behalf of the Chargor, and the Chargor agrees to repay to the Security Trustee on demand any sums of money expended by the Security Trustee in connection therewith together with interest thereon calculated in accordance with Condition 11.3 of the Bond Instrument and calculated from the time of the same respectively having been expended until the date of actual repayment, and the same shall, until repayment, be deemed part of the Secured Obligations and be secured hereby and recoverable accordingly.
Payments by Security Trustee. Any sum paid by the Security Trustee on behalf of the Borrower under clause 5.1:
(a) shall be reimbursed by the Borrower on demand by the Security Trustee on a full indemnity basis;
(b) is, pending reimbursement, secured by this deed and may be debited to any account of the Borrower as the Security Trustee deems fit; and
(c) shall bear interest accruing daily in arrear from the date of its payment at the default rate of interest specified in the Convertible Note Instrument.