Common use of Calls on security Clause in Contracts

Calls on security. If this clause 12.21 applies in accordance with clause 12.20, the Distributor may, on 2 Working Days’ notice to the Retailer (or immediately in the case of deemed Cash Deposit under clause 12.23), call on the security as follows: (a) if the Retailer provided a Cash Deposit (which includes a deemed Cash Deposit), the Distributor may draw down and apply the amount owed (including Default Interest) from the Cash Deposit and full beneficial ownership of that amount (plus Default Interest) will automatically transfer solely to the Distributor before the draw down; (b) if the Retailer arranged for a third party to provide security, the Distributor may call on the provider of a third party security to pay the amount owed in accordance with the security; and (c) in either case, the Distributor will immediately notify the Retailer that it has called on the security.

Calls on security. If this clause 12.21 applies in accordance with clause 12.20, the Distributor may, on 2 Working Days’ notice to the Retailer (or immediately in the case of deemed Cash Deposit under clause 12.23), call on the security as follows: (a) if the Retailer provided a Cash Deposit (which includes a deemed Cash Deposit), the Distributor may draw down and apply the amount owed (including Default Interest) from the Cash Deposit and full beneficial ownership of that amount (plus Default Interest) will automatically transfer solely to the Distributor before the draw down; (b) if the Retailer arranged for a third party to provide security, the Distributor may call on the provider of a third party security to pay the amount owed in accordance with the security; and (c) (c) in either case, the Distributor will immediately notify the Retailer that it has called on the security.