Terms & Conditions - HSBC

2.4 The Customer undertakes at all times to maintain the assets and property of a value
(according to the determination of the Bank) that exceeds or equals to the value
determined by the Bank to be appropriate to secure the amount of Secured Indebtedness
from time to time in accordance with the loan-to-asset ratio specified and notified by the
Bank to the Customer form time to time.
2.5 The Customer hereby undertakes, during the continuance of the security created
hereunder, to maintain absolute title to the Secured Assets and not, without the Bank’s
prior written consent, to withdraw, sell, dispose of or deal with or to change, pledge,
assign, otherwise encumber or grant or suffer to arise any third party rights over or
against any of the Secured Assets, except in the Bank’s favour. Further, if the Customer
creates or purports to create any security (whether fixed or floating) over the Secured
Assets or any part thereof, the security created by Clause 2 of this Section, to the extent
that it may be a floating charge, shall automatically and without notice from the Bank
crystallize and operate as a fixed charge instantly when such an event occurs.
2.6 The Customer undertakes to buy insurance or to request the mortgagor to do so (in
case of mortgage by a third party) to insure the Security Asset against all covered risks;
and to appoint the Bank as beneficiary in the insurance contract based on which the
insurer shall pay to the Bank any amount entitled by the Customer upon occurrence of
any insurance event under the insurance contract. In case of any insurance amount paid
to the Customer in relation to the Security Asset, the Customer shall have to refund such
payment to the Bank in accordance with related insurance contract.
2.7 The Customer undertakes, if and when required by the Bank, to execute or do such
agreements, assurance, acts and things as the Bank shall require to (i) secure the
Secured Indebtedness; (ii) perfect, protect or improve any security created or intended to
be created by Clause 2 of this Section; or (iii) facilitate the exercise or proposed exercise
by the Bank of any of its rights under this Section.
2.8 The Customer undertakes to pay the Bank, on demand, all the Bank’s expenses (including
legal and out-of-pocket expenses) of reasonable amount and reasonably incurred by
the Bank in contemplation of, or in connection with, the preservation, enforcement or
exercise of any rights under this Section.
2.9 Payments by the Customer shall be made to the Bank as specified by the Bank
without any set-off, counterclaim, withholding or conditions of any kind except that, if
the Customer is compelled by law to make such withholding, the sum payable by the
Customer shall be increased so that the amount actually received by the Bank is the
amount it would have received if there had been no withholding.
3. Enforcement of Security:
3.1 If:
(a)
(b)
(c)
(d)
The Customer has failed to pay any Secured Indebtedness on demand or is in default
under any of these Term and Condition; or
The Customer is unable or admits the inability to pay debts as they become due; or
Any proceedings in or analogous to the bankruptcy, insolvency or composition of the
Customer are started; or
Legal process is levied or enforced against any of the Customer’s assets.
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