Common use of Request for Security Clause in Contracts

Request for Security. (a) The Scheme Owner may request the provision of Security if: (i) (breach): the Customer commits a breach nominated in any of clause 13.2(a)(i), 13.2(a)(ii), 13.2(a)(iii) or 13.2(a)(v), whether the Scheme Owner has given a direction or not; or (ii) (financial capacity): the Scheme Owner is not reasonably satisfied as to the financial capacity of the Customer to comply with its obligations under this Agreement; or (iii) (initial customers on the LMA Start Date): this Agreement arose pursuant to section 738I(5) of the Water Act and as at immediately before the LMA Start Date, the Customer: (A) is the holder of a water allocation to whom water was supplied under the Resource Operations Licence immediately before the LMA Start Date; and (B) provided security in connection with a Customer’s Bulk Water Contract (including a contract for bundled bulk and distribution services between the Customer and the holder of a Resource Operations Licence which is in place as at immediately before the LMA Start Date) (Pre-LMA Start Date Contract Security), subject, in the case of a request under this clause 26.1(a)(iii), to the restrictions in clause 26.1(b); (iv) (new water allocation after the LMA Start Date): this Agreement arose pursuant to section 738I(7) of the Water Act and the Scheme Owner is not reasonably satisfied as to the financial capacity of the Customer to comply with its obligations under this Agreement; or (v) (lease or transfer of water allocation): this Agreement arose pursuant to section 738I(9) of the Water Act and the Scheme Owner is not reasonably satisfied as to the financial capacity of the Customer to comply with its obligations under this Agreement. (b) The Scheme Owner may not request the provision of Security under clause 26.1(a)(iii) unless: (i) the type of Security requested under clause 26.1(a)(iii) is the same as the type of the Pre-LMA Start Date Contract Security (or the Customer and the Scheme Owner agree that a different type of security may be requested);

Request for Security. (a) The Scheme Owner may request the provision of Security if: (i) (breach): the Customer commits a breach nominated in any of clause 13.2(a)(i), 13.2(a)(ii), 13.2(a)(iii) or 13.2(a)(v), whether the Scheme Owner has given a direction or not; or (ii) (financial capacity): the Scheme Owner is not reasonably satisfied as to the financial capacity of the Customer to comply with its obligations under this Agreement; or (iii) (initial customers on the LMA Start Date): this Agreement arose pursuant to section 738I(5) of the Water Act and as at immediately before the LMA Start Date, the Customer: (A) is the holder of a water allocation to whom water was supplied under the Resource Operations Licence immediately before the LMA Start Date; and (B) provided security in connection with a Customer’s Bulk Water Contract (including a contract for bundled bulk and distribution services between the Customer and the holder of a Resource Operations Licence which is in place as at immediately before the LMA Start Date) (Pre-LMA Start Date Contract Security), subject, in the case of a request under this clause 26.1(a)(iii25.1(a)(iii), to the restrictions in clause 26.1(b25.1(b); (iv) (new water allocation after the LMA Start Date): this Agreement arose pursuant to section 738I(7) of the Water Act and the Scheme Owner is not reasonably satisfied as to the financial capacity of the Customer to comply with its obligations under this Agreement; or (v) (lease or transfer of water allocation): this Agreement arose pursuant to section 738I(9) of the Water Act and the Scheme Owner is not reasonably satisfied as to the financial capacity of the Customer to comply with its obligations under this Agreement. (b) The Scheme Owner may not request the provision of Security under clause 26.1(a)(iii25.1(a)(iii) unless: (i) the type of Security requested under clause 26.1(a)(iii25.1(a)(iii) is the same as the type of the Pre-LMA Start Date Contract Security (or the Customer and the Scheme Owner agree that a different type of security may be requested);