Common use of Security Rights Clause in Contracts

Security Rights. 6.1. The Customer hereby grants to IDN a lien or equivalent security interest in respect of all goods, documents and moneys which IDN holds or will hold in his possession whatever the reason and the purpose thereof may be, as against any party requiring their delivery to secure the Customer’s payment obligations hereunder with respect to such Shipment or any other Shipment. If the goods are forwarded on, IDN shall be entitled to collect the sum due on subsequent delivery or draw a ▇▇▇▇ therefore with the shipping documents annexed. 6.2. IDN may also exercise the rights granted to it in Clause 6.1 for the amount that the Customer owes it with respect to previous orders. 6.3. Notwithstanding and without prejudice to Clause 6.1 above, the Customer agrees that it will upon demand by IDN provide security for any amount for which the Customer is or may become indebted to IDN. The Customer’s obligation to provide security at the request of IDN applies even if the Customer already has provided security in connection with any amount owed and to the extent that any such security provided by the Customer is found by IDN to be inadequate. 6.4. All consequences of non-compliance or of failure to comply forthwith with any demand by IDN to provide security shall be borne by the Customer. 6.5. If IDN has, notwithstanding the provisions of Clause 5.11 provided security to any other person or authority from its own funds, IDN has the liberty to demand and the Customer agrees to pay IDN the full amount of any security provided by IDN before any Shipment is delivered. 6.6. Upon any default by the Customer and at any time thereafter, IDN may declare all obligations secured hereby immediately due and payable and IDN shall be deemed to have the remedies of a secured party to the fullest extent permitted under the law.