Common use of TITLE AND SECURITY Clause in Contracts

TITLE AND SECURITY. (a) The Intermediary represents on the date on which it sends a Payment Demand that it has good title to the Covered SME Transaction to which such Payment Demand relates and that such Covered SME Transaction is free and clear of any Security on such date. (b) The Intermediary undertakes on any date on which it sends a Payment Demand and at all times thereafter until the expiry of the Guarantee that, unless otherwise permitted in writing by the Guarantor, it shall not create nor permit to subsist any Security over any Covered SME Transaction to which a Payment Demand relates.