Common use of SUBSTITUTION OF SECURITY Clause in Contracts

SUBSTITUTION OF SECURITY. If: (a) an Obligor under a Purchased Receivable is, in accordance with the relevant Approved Seller's ordinary course of business, entitled to replace the related Receivable Security, or a Security Interest which is a Related Security, with another security securing the same Receivable; (b) the representations and warranties of the Approved Seller in clause 12.6(a) and in the relevant Supplementary Terms Notice would be true and correct in relation to the Receivable and the new Security Interest at the time of substitution as if it was specified as a Purchased Receivable in the Sale Notice; and (c) without limitation, in relation to Land, the new security would be subject to a Mortgage Insurance Policy under which the Trustee would be the insured; then: (i) the Approved Seller may discharge the related Receivable Security, or the relevant Related Security, on the giving of the new security; (ii) the new security shall be taken to be a Purchased Receivable Security or a Related Security in relation to the relevant Trust, as the case may be, for the purposes of each Transaction Document and it and the related Receivable Rights shall be Assets of the relevant Trust; and (iii) the Approved Seller shall do anything else reasonably necessary to assure to the Trustee its interest in that new security.