Common use of Clean Title Clause in Contracts

Clean Title. Each party agrees that all right, title and interest in and to any Acceptable Margin, Equivalent Margin, Equivalent Dividends or Interest which it transfers to the other party shall vest in the recipient free and clear of any security interest, lien, charges, encumbrance or other restriction. Notwithstanding the use of the terms such as “Margin” which are used to reflect terminology used in the market for such transactions, nothing in these provisions is intended to create or does create in favour of either party mortgage, charge, lien, pledge, encumbrance or other security interest in any Acceptable Margin, Equivalent Margin, Equivalent Dividends on Interest Transferred hereunder.