Common use of Obligation to Grant Security Clause in Contracts

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) Subject to clause 4.8(b4.109(b), the Operator will 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(a4.109(a) will must be provided by the Operator within 7 seven (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(b4.109(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 seven (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(d4.109(d), the continuance of the Security (or any replacement thereof under clause 4.8(b4.109(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(b4.109(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 three (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(d4.109(d) does not preclude ARTC from issuing a further notice under clause 4.84. 109(b) if the circumstances described in that clause apply. (e) The amount of the Security will be reviewed every 12 months from the Commencement Date. The results of the review are not subject to clause 17. (f) The term of the Security must be for the same or a greater period than the Term under clause 3. The term of the Security must be extended to at least match any extension of the Term. (g) Upon expiry of the Agreement, ARTC 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 ARTC under this Agreement.

Obligation to Grant Security. (a) Subject to clause 4.8(b4.9(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(a4.9(a) will be provided by the Operator within 7 seven (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(b4.9(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 seven (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(d4.9(d), the continuance of the Security (or any replacement thereof under clause 4.8(b4.9(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(b4. 9(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 three (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(d4.9(d) does not preclude ARTC from issuing a further notice under clause 4.84.9 (b) if the circumstances described in that clause apply.

Obligation to Grant Security. (a) Subject to clause 4.8(b4.9(b), the Operator will 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(a4.9(a) will must be provided by the Operator within 7 seven (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(b4.9(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 seven (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(d4.9(d), the continuance of the Security (or any replacement thereof under clause 4.8(b4.9(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(b4. 9(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 three (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(d4.9(d) does not preclude ARTC from issuing a further notice under clause 4.84.9(b) if the circumstances described in that clause apply. (e) The amount of the Security will be reviewed every 12 months from the Commencement Date. The results of the review are not subject to clause 17. (f) The term of the Security must be for the same or a greater period than the Term under clause 3. The term of the Security must be extended to at least match any extension of the Term. (g) Upon expiry of the Agreement, ARTC 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 ARTC under this Agreement.

Obligation to Grant Security. (a) Subject to clause 4.8(b4.9(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(a4.9(a) will be provided by the Operator within 7 seven (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(b4.9(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 seven (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(d4.9(d), the continuance of the Security (or any replacement thereof under clause 4.8(b4.9(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(b4. 9(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 three (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(d4.9(d) does not preclude ARTC from issuing a further notice under clause 4.8preclude

Obligation to Grant Security. (a) Subject to clause 4.8(b4.10(b), the Operator will 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(a4.10(a) will must be provided by the Operator within 7 seven (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(b4.10(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 seven (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(d4.10(d), the continuance of the Security (or any replacement thereof under clause 4.8(b4. 10(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(b4. 10(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 three (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(d4.10(d) does not preclude ARTC from issuing a further notice under clause 4.84. 10(b) if the circumstances described in that clause apply. (e) The amount of the Security will be reviewed every 12 months from the Commencement Date. The results of the review are not subject to clause 17. (f) The term of the Security must be for the same or a greater period than the Term under clause 3. The term of the Security must be extended to at least match any extension of the Term. (g) Upon expiry of the Agreement, ARTC 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 ARTC under this Agreement.