Common use of Enforcement of the Loans Clause in Contracts

Enforcement of the Loans. Where the loan agreement indicates that a loan is to be secured, the borrower’s obligations under the loan agreement to you will be secured by a first legal charge and in the event that a borrower fails to make a payment when due or defaults in meeting any material obligations of the loan, you agree that Blackfinch may instruct our security trustee (the “Security Trustee”) to enforce the security on your behalf constituted by the legal charge agreement. In the circumstances described above, you agree that the Security Trustee will act on your behalf as security agent in respect of any borrower’s liabilities to you under each loan. All communications to a borrower in connection with any such security will be made through the Security Trustee. When Blackfinch or the Security Trustee has been provided with information by a relevant borrower, we or the Security Trustee may provide to you as lender certain information about the assets of that borrower and/or an asset register detailing such assets together with estimated forced re-sale value of such assets on enforcement. In such circumstances, any asset valuation provided will be indicative of the value of the asset or assets only and realisation on enforcement in connection with the sale of such asset or assets may be lower (or higher) than the value set out in the asset register. The Security Trustee will hold the assets charged under any security upon trust for itself and for all lenders to that borrower (including you). From time to time the Security Trustee may perform (before or after any enforcement under the terms of the security) all obligations, rights and benefits given to the Security Trustee by any legal charge agreement and by any future security that the Security Trustee may take in respect of the debt due under the loan or under any document entered into, pursuant to such legal charge agreement and/or future security. The Security Trustee (as security agent) shall have certain powers and discretions conferred upon trustees and may also rely on any representation, notice or document believed by it to be genuine, correct and appropriately authorised and any statement made by any director, authorised signatory or employee of any person regarding any matters which may reasonably be assumed to be within his knowledge or within his power to verify. Where the Security Trustee holds a legal charge agreement in respect of a particular loan or the liabilities of a particular borrower, that agreement will generally operate to secure all monies due from that borrower to lenders participating in the Blackfinch Corporate Management Service. If the Security Trustee is required to enforce any security agreement, and any proceeds of recovery become available (after allowing for all of the Security Trustee’s costs of enforcement), it is possible that the available proceeds will not be sufficient to discharge all obligations owed by the borrower at that time to lenders participating in the Blackfinch Corporate Management Service. If that is the case, then the lenders shall only be entitled to recover their proportionate share of such recoveries. In addition, it is possible that there may be other creditors of the borrower that have claims that may be recovered in priority to those of the Security Trustee and the Blackfinch Corporate Management Service lenders, so the existence of such a legal charge agreement should not be considered to be a guarantee of certain repayment in the event of failure by the borrower in meeting its payments. You agree that the Security Trustee shall be entitled to be repaid and reimbursed out of the proceeds of any recovery under any legal charge agreement and that you will pay all reasonable costs incurred by the Security Trustee in enforcing the security or in complying with any instructions from you in connection with any security agreement. You will only be responsible for payment of such costs out of the proceeds of any recovery and to the extent that such costs cannot be recovered by the Security Trustee from the relevant borrower.

Enforcement of the Loans. Where the loan agreement indicates that a loan is to be secured, the borrower’s obligations under the loan agreement to you will be secured by a first legal charge and in the event that a borrower fails to make a payment when due or defaults in meeting any material obligations of the loan, you agree that Blackfinch may instruct our security trustee (the “Security Trustee”) to enforce the security on your behalf constituted by the legal charge agreement. In the circumstances described above, you agree that the Security Trustee will act on your behalf as security agent in respect of any borrower’s liabilities to you under each loan. All communications to a borrower in connection with any such security will be made through the Security Trustee. When Blackfinch or the Security Trustee has have been provided with information by a relevant borrower, we or the Security Trustee may provide to you as lender certain information about the assets of that borrower and/or an asset register detailing such assets together with estimated forced re-sale value of such assets on enforcement. In such circumstances, any asset valuation provided will be indicative of the value of the asset or assets only and realisation on enforcement in connection with the sale of such asset or assets may be lower (or higher) than the value set out in the asset register. The Security Trustee will hold the assets charged under any security upon trust for itself and for all lenders to that borrower (including you). From time to time the Security Trustee may perform (before or after any enforcement under the terms of the security) all obligations, rights and benefits given to the Security Trustee by any legal charge agreement and by any future security that the Security Trustee may take in respect of the debt due under the loan or under any document entered into, pursuant to such legal charge agreement and/or future security. The Security Trustee (as security agent) shall have certain powers and discretions conferred upon trustees and may also rely on any representation, notice or document believed by it to be genuine, correct and appropriately authorised and any statement made by any director, authorised signatory or employee of any person regarding any matters which may reasonably be assumed to be within his knowledge or within his power to verify. Where the Security Trustee holds a legal charge agreement in respect of a particular loan or the liabilities of a particular borrower, that agreement will generally operate to secure all monies due from that borrower to lenders participating in the Blackfinch Corporate Management Service. If the Security Trustee is required to enforce any security agreement, and any proceeds of recovery become available (after allowing for all of the Security Trustee’s costs of enforcement), it is possible that the available proceeds will not be sufficient to discharge all obligations owed by the borrower at that time to lenders participating in the Blackfinch Corporate Management Service. If that is the case, then the lenders shall only be entitled to recover their proportionate share of such recoveries. In addition, it is possible that there may be other creditors of the borrower that have claims that may be recovered in priority to those of the Security Trustee and the Blackfinch Corporate Management Service lenders, so the existence of such a legal charge agreement should not be considered to be a guarantee of certain repayment in the event of failure by the borrower in meeting its payments. You agree that the Security Trustee shall be entitled to be repaid and reimbursed out of the proceeds of any recovery under any legal charge agreement and that you will pay all reasonable costs incurred by the Security Trustee in enforcing the security or in complying with any instructions from you in connection with any security agreement. You will only be responsible for payment of such costs out of the proceeds of any recovery and to the extent that such costs cannot be recovered by the Security Trustee from the relevant borrower.