Right to Rehypothecate Clause Samples

Right to Rehypothecate. (a) Pursuant to the terms of the Old Transaction and the Transferor Security Deed, the Remaining Party has the right to Rehypothecate any Collateral (as each such term is defined in the Old Confirmation). To the extent the Remaining Party has exercised this right, the Remaining Party is obliged to deliver equivalent securities (securities of the same class and issue as the Rehypothecated Shares (as such term is defined in the Old Confirmation)), cash or other assets (as applicable) to the Transferor on the Novation Date. (b) To the extent the Remaining Party has exercised the right described in sub-paragraph (a) above, the parties hereby agree and acknowledge that: (i) the obligation of the Remaining Party to deliver equivalent securities, cash or other assets (as applicable) in connection with the exercise of that right (the “Relevant Assets”) to the Transferor is deemed to be satisfied on the Novation Date; (ii) the Transferor is deemed to have delivered the Relevant Assets to the Transferee’s Collateral Account (as such term is defined in the New Confirmation) on the Novation Date. Such Relevant Assets form part of the Collateral (as such term is defined in the New Confirmation) subject to the Transferee Security Deed; and (iii) the Remaining Party is, as at the Novation Date, deemed to have exercised its rights to Rehypothecate (as such term is defined in the New Confirmation) securities, cash or other assets (as applicable) equivalent to the Relevant Assets. The Remaining Party is obliged to deliver securities, cash or other assets (as applicable) equivalent to the Relevant Assets at the time the Remaining Party is required to return Collateral (as such term is defined in the New Confirmation), save to the extent the Remaining Party’s obligation to return equivalent Collateral (as such term is defined in the New Confirmation) is discharged in accordance with the other provisions of the New Confirmation.