Common use of Collateral Arrangement Clause in Contracts

Collateral Arrangement. 3.9. As a further support for the Discom obligations, on or prior to the expiry of the TPA, the Discom and NTPC shall execute Default Escrow Agreement (referred as “Default Escrow Agreement”) for the establishment and operation of the Default Escrow Account in favour of NTPC, through which the revenues of the Discom shall be routed and used as per the terms of the Default Escrow Agreement. The Discom and NTPC shall contemporaneously with the execution of the Default Escrow Agreement enter into the Agreement to Hypothecate Cum Deed of Hypothecation, whereby the Discom shall agree to hypothecate, Incremental Receivables to the extent as required for the Letter of Credit as per Article 3.2 The Default Escrow Agreement and the Agreement to Hypothecate Cum Deed of Hypothecation are collectively referred to as the “Collateral Arrangement”. Provided that the Discom shall ensure that NTPC shall have first ranking charge on the Receivables in accordance with the terms of the Agreement to Hypothecate Cum Deed of Hypothecation.

Collateral Arrangement. 3.9. As a further support for the Discom obligations, on or prior to the expiry of the TPA, the Discom and NTPC NHPC shall execute Default Escrow Agreement (referred as “Default Escrow Agreement”) for the establishment and operation of the Default Escrow Account in favour of NTPCNHPC, through which the revenues of the Discom shall be routed and used as per the terms of the Default Escrow Agreement. The Discom and NTPC NHPC shall contemporaneously with the execution of the Default Escrow Agreement enter into the Agreement to Hypothecate Cum Deed of Hypothecation, whereby the Discom shall agree to hypothecate, Incremental Receivables to the extent as required for the Letter of Credit as per Article 3.2 The Default Escrow Agreement and the Agreement to Hypothecate Cum Deed of Hypothecation are collectively referred to as the “Collateral Arrangement”. Provided that the Discom shall ensure that NTPC NHPC shall have first ranking charge on the Receivables in accordance with the terms of the Agreement to Hypothecate Cum Deed of Hypothecation.

Collateral Arrangement. 3.9. As a further support for the Discom Discom’s obligations, on or prior to the expiry of the TPAEffective Date, the Discom and NTPC NVVN shall execute Default Escrow Agreement (referred as “Default Escrow Agreement”) for the establishment and operation of the Default Escrow Account in favour of NTPCNVVN, through which the revenues of the Discom shall be routed and used as per the terms of the Default Escrow Agreement. The Discom and NTPC NVVN shall contemporaneously with the execution of the Default Escrow Agreement enter into the Agreement to Hypothecate Cum Deed of Hypothecation, whereby the Discom shall agree to hypothecate, Incremental Receivables to the extent as required for the Letter of Credit as per Article 3.2 6.4.2,. The Default Escrow Agreement and the Agreement to Hypothecate Cum Deed of Hypothecation are collectively referred to as the “Collateral Arrangement”. Provided that the Discom shall ensure that NTPC NVVN shall have first ranking charge on the Incremental Receivables in accordance with the terms of the Agreement to Hypothecate Cum Deed of Hypothecation.