Calls on security. If this clause 1.20 applies in accordance with clause 1.19, the Distributor may, on two Working Days’ notice to the Network User (or immediately in the case of deemed Cash Deposit), call on the security as follows: (a) if the Network User 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 Network User 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 Network User that it has called on the security.
Appears in 4 contracts
Samples: Use of System Agreement, Use of System Agreement, Use of System Agreement
