Common use of Equipment Supply Clause in Contracts

Equipment Supply. (a) If Powernet or a third party at Powernet’s request sells any goods or equipment to the Client (Equipment): (i) Powernet retains title to and ownership of all the Equipment until all amounts due in respect of all Equipment sold by or on behalf of Powernet to the Client or at its request have been paid by the Client in full; (ii) risk of loss or damage of the Equipment passes to the Client when it is delivered to the Client’s premises; (iii) the Client must fully insure the Equipment from the time of delivery and maintain the insurance until the Client obtains title, and failing that until the equipment is delivered up to Powernet . The Client must insure the equipment for its full value and ensure that Powernet’s interest is noted on the policy. Powernet may require the Client to demonstrate compliance with this clause by producing a copy of the insurance policy; (b) The Client must not: (i) mortgage, charge or encumber the equipment without Powernet’s written consent; and (ii) loan, rent, licence, transfer or assign or part with possession of the equipment without Powernet’s written consent. (c) The Client must allow Powernet to enter upon the Client’s premises to inspect the equipment in the Client’s possession upon reasonable notice from time to time; (d) If: (i) the Client fails to pay any amount (whether in whole or part) payable in respect of any equipment by the time required for payment; (ii) the Client become insolvent (as that term is defined in the Corporations Act 2001); or (iii) the Agreement is terminated, or becomes terminable at Powernet’s option, Powernet may, without notice to the Client, enter at any reasonable time any premises where equipment is located (or believed by Powernet to be located) and take possession of that equipment not paid for to the value of the amount owing. Powernet’s permission to enter the Client’s premises for that purpose is irrevocable. Powernet is not liable to the Client in contract, tort or otherwise, for any costs, damages, expenses or losses incurred by the Client as a result of any action taken by Powernet under this clause. (e) If any equipment belonging to Powernet is sold or otherwise disposed of by the Client or if any insurance claim is made in respect of them, Powernet is entitled to trace and receive the sale or insurance proceeds. The Client must notify Powernet of all insurance claims made by the Client in respect of the equipment. The Client must keep the proceeds of sale or insurance in a separate bank account on trust for Powernet. (f) The Client must reimburse to Powernet all costs incurred by Powernet in exercising Powernet’s rights under this clause .