Distributor may require Additional Security Sample Clauses
This clause grants the distributor the right to request additional security from the other party, typically to safeguard against potential financial risks or defaults. In practice, this may involve the distributor asking for a larger deposit, a letter of credit, or other forms of financial assurance if they believe the existing security is insufficient. The core function of this clause is to protect the distributor’s interests by ensuring they have adequate recourse if the counterparty fails to meet its obligations, thereby reducing the distributor’s exposure to financial loss.
Distributor may require Additional Security. The Distributor may, by notice to the Trader, require the Trader to provide Additional Security. The amount of any Additional Security required must be such that the total value of all security required to be provided by the Trader under this Agreement is not more than the Distributor's reasonable estimate of the charges that the Trader will be required to pay to the Distributor under this Agreement in respect of any 2 month period.