Common use of Obligation to Provide Security Clause in Contracts

Obligation to Provide Security. (a) The End User must deliver to Aurizon Network, prior to the operation of Train Services, and maintain during the Term, security for the performance of the End User’s obligations under this Agreement in the form of: (i) an unconditional and irrevocable bank guarantee (or equivalent), for the Security Amount, in favour of Aurizon Network issued by a bank holding a current Australian banking licence and with a credit rating acceptable to Aurizon Network in the form set out in Schedule 7 or such other form as is reasonably acceptable to Aurizon Network; or (ii) any other security reasonably acceptable to Aurizon Network, (the “Security”). (b) Where the End User has delivered a Security to Aurizon Network in the form of cash, Aurizon Network will pay interest to the End User annually at the Security Interest Rate published on the day the Security 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.