Common use of Void or voidable transactions Clause in Contracts

Void or voidable transactions. If: (a) the State has at any time released or discharged: (i) the Guarantor from its obligations under this Deed; or (ii) any assets of the Guarantor from a Security, in either case in reliance on a payment, receipt or other transaction to or in favour of the State; or (b) any payment or other transaction to or in favour of the State has the effect of releasing or discharging: (i) the Guarantor from its obligations under this Deed; or (ii) any assets of the Guarantor from a Security; and (c) that payment, receipt or other transaction is subsequently claimed by any person to be void, voidable or capable of being set aside for any reason, including under an Insolvency Provision or under the general law; and (d) that claim is upheld or is conceded or compromised by the State, then: (e) (Restitution of rights): the State will immediately become entitled against the Guarantor to all rights (including under any Security) as it had immediately before that release or discharge; (f) (Restore State’s position): the Guarantor must immediately do all things and execute all documents as the State may reasonably require to restore to the State all those rights; and (g) (Indemnity): the Guarantor must indemnify the State against costs, losses and expenses suffered or incurred by the State in or in connection with any negotiations or proceedings relating to the claim or as a result of the upholding, concession or compromise of the claim.

Void or voidable transactions. If: (a) the State Principal has at any time released or discharged: (i) the Guarantor from its obligations under this Deed; or (ii) any assets of the Guarantor from a Security, in either case in reliance on a payment, receipt or other transaction to or in favour of the StatePrincipal; or (b) any payment or other transaction to or in favour of the State Principal has the effect of releasing or discharging: (i) the Guarantor from its obligations under this Deed; or (ii) any assets of the Guarantor from a Security; and (c) that payment, receipt or other transaction is subsequently claimed by any person to be void, voidable or capable of being set aside for any reason, including under an Insolvency Provision or under the general law; and (d) that claim is upheld or is conceded or compromised by the StatePrincipal, then: (e) (Restitution of rights): the State Principal will immediately become entitled against the Guarantor to all rights (including under any Security) as it had immediately before that release or discharge; (f) (Restore StatePrincipal’s position): the Guarantor must immediately do all things and execute all documents as the State Principal may reasonably require to restore to the State Principal all those rights; and (g) (Indemnity): the Guarantor must indemnify the State Principal against costs, losses and expenses suffered or incurred by the State Principal in or in connection with any negotiations or proceedings relating to the claim or as a result of the upholding, concession or compromise of the claim.