Dealing in Collateral; Equivalent Collateral. 11.1 Save for in the case where the Collateral is China Connect Securities, the Customer as beneficial owner of the Collateral hereby gives its full and irrevocable consent to CMSHK to borrow all or any of the Collateral from the Customer at any time and from time to time without notice to the Customer. Accordingly, the Customer acknowledges that CMSHK shall be entitled to use, sell, on-lend, deal in and/or otherwise dispose of such Collateral to any persons and to execute and sign all transfers and documents and do all things necessary in connection therewith and/or for perfecting the title of such persons. The Customer further acknowledges that CMSHK shall be entitled to keep all such proceeds arising from such use, sale, on-lending, dealing or other disposition absolutely for its own account and benefit and shall not be under any obligation to account to the Customer for any such proceeds. In consideration therefor, CMSHK agrees to return Equivalent Collateral in respect of such Collateral so borrowed and used, sold, on-lent, dealt or otherwise disposed of upon or at any time before the release by CMSHK of the security under this Schedule and the Customer hereby irrevocably agrees to accept the return of such Equivalent Collateral (in substitution for such Collateral so borrowed and disposed of by CMSHK). In the case of Collateral other than those in scripless form, the delivery by CMSHK to the Customer or its nominee of the relevant Equivalent Collateral with appropriate instruments of transfer shall constitute a discharge of the obligation of CMSHK to return the relevant Equivalent Collateral under this Clause.
