Common use of Power of appropriation Clause in Contracts

Power of appropriation. You further agree that, to the extent that any of the Margin you provide us with under these Terms and Conditions constitutes “financial collateral” and this Agreement and your obligations hereunder constitute a “security financial collateral arrangement”, we shall have the right to appropriate all or any part of such ‘financial collateral’ in or towards discharge of any Secured Obligations. For these purposes, you agree that the value of such ‘financial collateral’ so appropriated shall be the amount of the Margin, together with any accrued but un-posted interest, at the time the right of appropriation is exercised. It is further agreed and understood that the method of valuation provided for in this Agreement shall constitute a commercially reasonable method of valuation for the purposes hereof.

Power of appropriation. You further agree that, to the extent that any of the Margin you provide us with under these Terms and Conditions constitutes “financial collateral” and this Agreement and your obligations hereunder constitute a “security financial collateral arrangement”, we shall have the right to appropriate all or any part of such ‘financial collateral’ in or towards discharge of any Secured Obligations. For these purposes, you agree that the value of such ‘financial collateral’ so appropriated shall be the amount of the Margin, together with any accrued but un-posted interestpostedinterest, at the time the right of appropriation is exercised. It is further agreed and understood that the method of valuation provided for in this Agreement shall constitute a commercially reasonable method of valuation for the purposes hereof.