Common use of Appointment of the Sponsor Clause in Contracts

Appointment of the Sponsor. 20.1 If the Lender requires the Security Owner to hold any part or all of the Secured Portfolio in a Participant Sponsored Holding (the Sponsored Portfolio) with the Sponsor, then: (a) the Security Owner appoints the Sponsor to be the Controlling Participant in relation to all CHESS Holdings comprising the Sponsored Portfolio (except as may otherwise be agreed by the Lender); (b) the Sponsored Portfolio is part of the Secured Portfolio; (c) the Security Owner directs the Sponsor to convert or transfer any of Sponsored Portfolio which is an eligible Certificated Holding to a CHESS Holding; and (d) the Sponsored Portfolio of the Security Owner will be identified by the Holder Identification Number (HIN) notified to the Security Owner by CHESS. 20.2 Any prior sponsorship arrangement between the Security Owner and the Sponsor in relation to the Sponsored Portfolio being a sponsorship arrangement which is in the name of the Security Owner as shown on the Application Form is terminated when the Agreement begins without affecting adversely any rights or obligations that arose before its termination. 20.3 For the purposes of avoiding ambiguity the Security Owner acknowledges that different Persons may act as the Sponsor in respect of different items of the Sponsored Portfolio at any one time.