Security Differences Clause Samples
The 'Security Differences' clause defines how discrepancies or mismatches in security interests or collateral arrangements between parties are identified and addressed. In practice, this clause outlines procedures for reconciling differences in the value, type, or status of collateral held by each party, and may specify timelines or methods for resolving such inconsistencies. Its core function is to ensure both parties maintain a clear and accurate understanding of their respective security interests, thereby reducing the risk of disputes or unintended exposures.
Security Differences and in consideration for its access and use of a Connected Component or for BNYM permitting Permitted Users to access and use a Connected System it consents to the existence of the Security Differences and agrees that the Security Differences do not constitute negligence or other Liable Conduct on the part of BNYM; and