Common use of Security and Negative pledge Clause in Contracts

Security and Negative pledge. (a) The Borrower will not, without the prior consent of the Bank, create or permit to subsist any Security Interest (including and without derogating from the generality of the abovementioned - any floating charge) on any of its present or future assets other than as set out in paragraph (b) below. (b) The following Security Interests (the "Permitted Security Interests") may be created or permitted to subsist by the Borrower: (i) any Security Interest over assets of the Borrower arising solely by operation of law; (ii) any Security Interest over goods and documents of title to goods arising in the ordinary course of business, letter of credit transactions entered into in the ordinary course of trade; (iii) any Security Interest existing at the time of acquisition on or over any asset acquired by it in the ordinary course of business on arm’s length terms, where such Security Interest was not created in contemplation of, or in connection with, the acquisition; (iv) any Security Interest constituting operating leases or hire purchase arrangements affecting assets of the Borrower; (v) any Security Interest arising in relation to the netting of bank account balances; (vi) any Security Interest arising by way of any retention of title of goods supplied where such retention is agreed in the ordinary course of its business; (vii) any Security Interest created pursuant to Section 169(d) of the Israeli Companies Ordinance (or any succeeding law), and for this purpose, the wording "any credit enabling the purchase of an asset" shall be construed to also include any loans or credits given from time to time in order to refinance such purchase; and (viii) any Security Interest created (other than by way of floating charge) in favour of a third party, over specific assets or rights of the Borrower other than pursuant to paragraphs (i) to (vii) above, securing obligations of no greater than NIS100,000,000 (one hundred million New Israeli Shekels) in aggregate.