Common use of Exercise of Security Clause in Contracts

Exercise of Security. (a) The Security will be held by ARTC as security for the performance of the obligations of the Operator under this Agreement and may be called upon by ARTC in any circumstances in which ARTC suffers any loss as a result of default by the Operator under this Agreement. (b) If ARTC exercises or draws on the Security, the Operator will promptly provide a replacement bank guarantee or letter of credit for the amount drawn or exercised by ARTC against the Security and otherwise on the same terms as the Security.

Exercise of Security. (a) The Security will shall be held by ARTC as security for the performance of the obligations of the Operator under this Agreement and may be called upon by ARTC in any circumstances in which ARTC suffers any loss as a result of default by the Operator under this Agreement. (b) If ARTC exercises or draws on the Security, the Operator will must promptly provide a replacement bank guarantee or letter of credit for the amount drawn or exercised by ARTC against the Security and otherwise on the same terms as the Security.

Exercise of Security. (a) The Security will shall be held by ARTC as security for the performance of the obligations of the Operator under this Agreement and may be called upon by ARTC in any circumstances in which ARTC suffers any loss as a result of default by the Operator under this Agreement. (b) If ARTC exercises or draws on the Security, the Operator will must promptly provide a replacement bank guarantee or letter of credit for the amount drawn or exercised by ARTC against the Security and otherwise on the same terms as the Security. Note: FreightCorp and Toll do not consider that it is appropriate for security to be sought from them.