Common use of Security and Further Assurance Clause in Contracts

Security and Further Assurance. If by the terms of this letter, security is to be given by the Borrower in favour of the Bank, the Borrower shall ensure that each security document confers valid security, of the type which such security document purports to create, in favour of the Bank, over each asset, right and benefit expressed to be subject to such security and ensure that the Bank enjoys the priority which such security is expressed to have. The Borrower shall promptly execute all documents and do all things that the Bank reasonably specifies for the purpose of enabling it to exercise its rights under each security document or preserving the priority and effectiveness of such security.