Common use of Scope of Security Interest Clause in Contracts

Scope of Security Interest. (1) Notwithstanding anything to the contrary contained in Section 1.02, the Security Interest created hereunder shall not extend to, and the term “Collateral” shall not include, the following assets (collectively, the Excluded Assets and each, an Excluded Asset): (a) any permit, license, contract or other asset issued by a Governmental Authority to the Grantor or any contract or other agreement to which the Grantor is a party, in each case, only to the extent and for so long as the terms of such permit, license, contract or other asset issued by a Governmental Authority to the Grantor of such contract or other agreement or any provision of law applicable thereto, validly prohibit the creation by the Grantor of a security interest in such permit, license or agreement in favour of the Collateral Agent (after giving effect to the PPSA, any other applicable law (including the Bankruptcy and Insolvency Act (Canada)) or principles of equity); and (b) all accounts resulting from the sale or disposition of all property of the Grantor other than the Collateral and all supporting obligations and books and records relating thereto, provided, however, that Excluded Assets shall not include any proceeds, substitutions or replacements of any Excluded Assets referred to in clauses (a) through (b) (unless such proceeds, substitutions or replacements would constitute an Excluded Asset referred to in clauses (a) through (b). (2) The Security Interest shall not extend to consumer goods. (3) The Security Interest shall not extend or apply to the last day of the term of any lease or sublease or any agreement for a lease or sublease, now held or hereafter acquired by the Grantor in respect of real property, but the Grantor shall stand possessed of any such last day upon trust to assign and dispose of it as the Collateral Agent may direct.

Scope of Security Interest. (1) Notwithstanding anything to the contrary contained in Section 1.02, the Security Interest created hereunder shall not extend to, and the term “Collateral” shall not include, the following assets (collectively, the “Excluded Assets Assets” and each, an “Excluded Asset”): (a) any permit, license, contract or other asset issued by a Governmental Authority to the Grantor or any contract or other agreement to which the Grantor is a party, in each case, only to the extent and for so long as the terms of such permit, license, contract or other asset issued by a Governmental Authority to the Grantor of such contract or other agreement or any provision of law applicable thereto, validly prohibit the creation by the Grantor of a security interest in such permit, license or agreement in favour of the Collateral Canadian Agent (after giving effect to the PPSA, any other applicable law (including the Bankruptcy and Insolvency Act (Canada)) or principles of equity); and (b) all accounts resulting from the sale or disposition of all property of the Grantor other than the Collateral and all supporting obligations and books and records relating thereto, provided, however, that Excluded Assets shall not include any proceeds, substitutions or replacements of any Excluded Assets referred to in clauses (a) through and (b) (unless such proceeds, substitutions or replacements would constitute an Excluded Asset referred to in clauses (a) through and (b). (2) The Security Interest shall not extend to consumer goods. (3) The Security Interest shall not extend or apply to the last day of the term of any lease or sublease or any agreement for a lease or sublease, now held or hereafter acquired by the Grantor in respect of real property, but the Grantor shall stand possessed of any such last day upon trust to assign and dispose of it as the Collateral Canadian Agent may direct.