Obligation to Grant Security payment default
(a) If ARTC does not already hold Security, then, subject to
(b) The Security referred to in clause 7.2(a) will be provided by the Access Holder within seven days of the Access Holder receiving a request from ARTC. ARTC may only serve such a notice on the Access Holder under this clause 7.2
Obligation to Grant Security. (a) Subject to clause 4.8(b), the Operator will deliver to ARTC and keep current at all times during the Term, security for the Operator’s obligations under this Agreement in the form of an unconditional and irrevocable bank guarantee, letter of credit, performance or insurance bond (“Security”) issued by a bank holding an Australian banking licence or such other reputable person or institution accepted by ARTC in the amount of the average of 4 weeks Charges and containing such other terms and conditions acceptable to ARTC.
(b) The Security referred to in clause 4.8(a) will be provided by the Operator within 7 days of the Operator receiving a notice from ARTC requesting the same. ARTC may only serve such a notice on the Operator under this clause 4.8(b) if the Operator has defaulted in the payment of any monies owed by it to ARTC under this Agreement and has not remedied that default before the expiry of 7 days.
(c) The request for the Security by ARTC is in addition to and without derogation from any other rights ARTC may exercise against the Operator by reason of the breach of the Agreement. Subject to clause 4.8(d), the continuance of the Security (or any replacement thereof under clause 4.8(b)) is a condition of the performance by ARTC of its obligations under this Agreement. The decision of ARTC to issue a notice under clause 4.8(b) is not subject to clause 17.
(d) If, after Security has been provided in accordance with this clause, the Operator has not been in default in the payment of monies owed by it to ARTC under this Agreement for a continuous period of 3 months, ARTC will, on request of the Operator, notify it that the Security is no longer required and forthwith release the Security to the Operator. This clause 4.8(d) does not preclude ARTC from issuing a further notice under clause 4.8
Obligation to Grant Security. (a) The Security Deposit (if applicable) shall initially be for the amount specified in Item 5 of the Reference Schedule. If a Security Deposit is applicable the Access Holder must deliver to QR, prior to the operation of Train Services, security for the performance of the Access Holder’s obligations under this Agreement in the form of:
(i) an unconditional and irrevocable bank guarantee (or equivalent) issued by a bank holding a current Australian banking licence; or
(ii) any other security reasonably acceptable to QR and containing such other terms and conditions as are reasonably acceptable to QR.
(b) Where the Access Holder has delivered a Security Deposit to QR in the form of cash, QR will pay interest to the Access Holder annually at the Security Interest Rate published on the day the Security Deposit is provided. The Security Interest Rate shall be reset on the first business day of each Month (“Reset Date”) for that Month. Such interest shall be capitalised at each Reset Date and such capitalised interest shall itself bear interest at the Security Interest Rate.
(c) The Access Holder may, with QR’s consent, replace any Security Deposit provided by the Access Holder in accordance with this Clause with another form of Security Deposit acceptable to QR. If the Access Holder replaces the Security Deposit with another form of Security Deposit then QR will release the initial Security Deposit in accordance with Clause 2.6(b).
(d) The provision and continuance of the Security Deposit (or of any additional or replacement Security Deposit provided by the Access Holder in accordance with Clause 2.4(c) or Clause 2.4(f)) is a condition of the performance by QR of its obligations under this Agreement.
(e) If at any time during the Term QR does not hold a Security Deposit from the Access Holder, the Access Holder must provide a Security Deposit within fourteen (14) days after receipt of a notice from QR where:
(i) an event of default by the Access Holder in regard to payment of any amount due under this Agreement has occurred, that event of default is not the subject of a bona fide dispute between the Parties and such default continues for seven
Obligation to Grant Security.
(a) Subject to clause 4.6(b), the Operator must deliver to TAHE, and keep current at all times during the Term, security for the Operator’s obligations under this Agreement in the form of an unconditional and irrevocable bank guarantee in favour of TAHE, (“Security”) issued by a bank holding an Australian banking licence or such other reputable person or institution accepted by TAHE in the amount of 3 months Charges or $15,000, whichever is greater and containing such other terms and conditions acceptable to TAHE.
(b) The Security referred to in clause 4.6(a) must be provided by the Operator to TAHE prior to the Commencement Date.
(c) The Security referred to in clause 4.6(a) is in addition to and without derogation from any other rights TAHE may exercise against the Operator by reason of the breach of the Agreement. Subject to clause 4.6(d), the continuance of the Security (or any replacement thereof under clause 4.7(b)) is a condition of the performance by TAHE of its obligations under this Agreement.
(d) NOT USED.
(e) If the security has been granted under this clause 4.6 the amount of the Security will be updated every 12 months from the Commencement Date to reflect the then current amount of the 3 months Charges or $15,000, whichever is greater.
(f) The term of the Security must be for the same or a greater period than the Term. The term of the Security must be extended to at least match any extension of the Term.
(g) Upon expiry or termination of the Agreement, TAHE shall release the Security to the Operator provided that at such time the Operator is not in default in the payment of any monies owed by it to TAHE under this Agreement or in breach of any of its obligations under this Agreement.
Obligation to Grant Security. (1) Subject to clause 4.8(2), the Operator must, at GWAN's request and at its absolute discretion, deliver to GWAN and keep current at all times during the Term, security for the Operator’s obligations under this Agreement in the form and for the amount specified at Item E of Schedule 1, or in any other form agreed by GWAN (“Security”), and containing such other terms and conditions as are acceptable to GWAN.
(2) The term of the Security must be for the same or a greater period than the Term.
(3) The Security is in addition to and without derogation from any other rights GWAN may exercise against the Operator by reason of a breach of the Agreement.
(4) The provision of the Security is a condition of the performance by GWAN of its obligations under this Agreement.
(5) The decision of GWAN when to exercise the Security under clause 4.9(1) is not subject to clause 15.
(6) If, after Security has been provided in accordance with this clause, the Operator has not been in default in the payment of monies owed by it to GWAN under this Agreement for a continuous period of 3 months, GWAN may at its discretion, upon request of the Operator, notify it that the Security is no longer required and forthwith release the Security to the Operator. Nothing in this clause 4.8(6) precludes GWAN (acting reasonably) from exercising its rights under clause 4.8(1) to request further Security from the Operator.
(7) Upon expiry of the Term, GWAN will release the Security to the Operator if at that time the Operator is not in default in the payment of any monies owed to GWAN by the Operator under this Agreement, in which case the Security will be returned to the Operator less any money (disputed or undisputed) owing by the Operator to GWAN.
Obligation to Grant Security. Sub-clause 4.8(b) provides for security to be given if the operator defaults in the payment of monies and does not remedy that default within 7 days. As previously requested, it is reasonable to expect that an operator would be given written notice of a default prior to security being required. Further, sub-clause 4.8 (e) provides that if security is required, it will be reviewed every 12 months from the Commencement Date with the results of the review not subject to the dispute resolution clauses. It is not clear what a ‘review’ means. Could the amount of security required be increased? It is only reasonable for this review to be subject to the dispute resolution clause.
Obligation to Grant Security a) Subject to clause 4.8(b), the Operator must deliver to ARTC and keep current at all times during the Term, security for the Operator’s obligations under this Agreement in the form of an unconditional and irrevocable bank guarantee, letter of credit, performance or insurance bond (“Security”) issued by a bank holding an Australian banking licence or such other reputable person or institution accepted by ARTC in the amount of the average of 4 weeks Charges and containing such other terms and conditions acceptable to ARTC.
b) The Security referred to in clause 4.8 must be provided by the Operator within seven
Obligation to Grant Security payment default
(a) If ARTC does not already hold Security, then, subject to clause 7.2(b), the Access Holder will deliver to ARTC and keep current at all times during the Term, Security in the amount of one month’s TOP Charges.
(b) The Security referred to in clause 7.2(a) will be provided by the Access Holder within seven days of the Access Holder receiving a request from ARTC. ARTC may only serve such a notice on the Access Holder under this clause 7.2(b) if the Access Holder has defaulted in the payment of any monies owed by it to ARTC under this agreement and has not remedied that default before the expiry of seven days.
(c) The request for Security by ARTC is in addition to, and without derogation from, any other rights ARTC may exercise against the Access Holder by reason of the breach of the agreement. Subject to clause 7.2(d), the continuance of the Security (or any replacement thereof under clause 7.2(b)) is a condition of the performance by ARTC of its obligations under this agreement. The decision of ARTC to issue a notice under clause 7.2(b) is not subject to clause 14.
(d) If, after Security has been provided in accordance with this clause 7.2, the Access Holder has not been in default in the payment of monies owed by it to ARTC under this agreement for a continuous period of three months, ARTC will, on request of the Access Holder, promptly release the Security to the Access Holder. This clause 7.2(d) does not preclude ARTC from issuing a further notice under clause 7.2(b) if the circumstances described in that clause apply.
(e) The amount of the Security will be reviewed every 12 months from the Effective Date. The results of the review are not subject to clause 14.
(f) Subject to clause 7.2(d) the term of the Security will be for at least [364 days]. ARTC may draw on the Security on the last Business Day prior to the expiry of the Security unless, at least three Business Days before the expiry date of the Security, replacement Security to the required amount has been provided by or on behalf of the Access Holder.
(g) Upon termination of the agreement, ARTC will release the Security to the Access Holder provided that at such time the Access Holder does not owe any monies to ARTC under this agreement, in which case, the Security will be returned to the Access Holder less any money (disputed or undisputed) owing by the Access Holder to ARTC.
