Common use of Replacement of Security Clause in Contracts

Replacement of Security. (a) The Access Holder may, with Aurizon Network’s consent, replace any Security provided by the Access Holder under this clause 6 with replacement Security which satisfies the requirements of this clause 6. (b) If the Security provided by an Access Holder under this clause 6 is a bank guarantee that has an expiry date, then: (i) the Access Holder must, at least 20 Business Days prior to the expiry of the bank guarantee, deliver to Aurizon Network replacement Security which satisfies the requirements of this clause 6; and (ii) if the Access Holder does not deliver to Aurizon Network replacement Security in accordance with clause 6.5(b)(i): (A) Aurizon Network may, in its absolute discretion, draw on the existing bank guarantee; (B) any such amount drawn by Aurizon Network (Cash Deposit) will be treated as a deposit of cash delivered by or on behalf of the Access Holder as Security under this Agreement in place of the relevant bank guarantee; (C) this clause 6 will apply (with any necessary changes) in respect of the Cash Deposit; and (D) if requested by the Access Holder at any time, Aurizon Network must return the Cash Deposit to the Access Holder in exchange for the Access Holder delivering to Aurizon Network replacement Security which satisfies the requirements of this clause 6.

Replacement of Security. ‌ (a) The Access Holder may, with Aurizon Network’s consent, replace any Security provided by the Access Holder under this clause 6 with replacement Security which satisfies the requirements of this clause 6. (b) If the Security provided by an Access Holder under this clause 6 is a bank guarantee that has an expiry date, then: (i) the Access Holder must, at least 20 Business Days prior to the expiry of the bank guarantee, deliver to Aurizon Network replacement Security which satisfies the requirements of this clause 6; andand‌ (ii) if the Access Holder does not deliver to Aurizon Network replacement Security in accordance with clause 6.5(b)(i): (A) Aurizon Network may, in its absolute discretion, draw on the existing bank guarantee; (B) any such amount drawn by Aurizon Network (Cash Deposit) will be treated as a deposit of cash delivered by or on behalf of the Access Holder as Security under this Agreement in place of the relevant bank guarantee; (C) this clause 6 will apply (with any necessary changes) in respect of the Cash Deposit; and (D) if requested by the Access Holder at any time, Aurizon Network must return the Cash Deposit to the Access Holder in exchange for the Access Holder delivering to Aurizon Network replacement Security which satisfies the requirements of this clause 6.