DEBENTURE TRUST DEED PURPOSE OF REPORT ...

Debenture Trust Deed 38
Application: is to apply, for the purposes of this Deed, all money
received from the Trustee arising from the Charged Assets
and the Trustee may determine what funds the Receiver
shall keep in hand;
Borrow: may, for the purpose of defraying any costs, losses,
charges or expenses (including his or her remuneration)
which shall be incurred by him or her in the exercise of
rights vested in him or her, and for all or any other
purposes of this Deed raise and borrow money by way of
any transaction which is lawfully entered into by the
Council on the security of all or any part of the Charged
Assets either in priority to the Secured Money and the
security created by this Deed as may be permitted by the
Act or otherwise, at such rate or rates of interest and
generally on such terms and conditions as he or she thinks
fit (and no person lending any such money shall be
concerned to enquire as to the propriety or purpose of the
exercise of this power or to see to the application of any
money so raised or borrowed) and for those purposes may
execute and do all such assurances and things as he or
she thinks fit PROVIDED ALWAYS THAT a Receiver shall
not exercise any such power without first obtaining the
written consent of the Trustee thereto but the Trustee shall
incur no responsibility or liability to the lender or otherwise
by reason of its giving or refusing such consent whether
absolutely or subject to any limitation or condition.
Trustee's Right to Sell Concurrently: The Trustee may, upon such terms as it
thinks proper, join in exercising its rights under this Deed with any other
secured creditor of the Council and in particular may on such terms as it
thinks proper join in appointing a common Receiver of all or any part of
the Charged Assets, subject to the Trustee retaining such priority as is
enjoyed by it in respect of the Charged Assets but with liberty for the
Trustee to make any arrangement it thinks proper for the purpose of
ensuring the respective priorities.
No Liability as Mortgagee in Possession: The Trustee or any Receiver shall not
be liable, by reason of an entry into possession of all or any part of the
Charged Assets, to account as mortgagee in possession or for anything
except actual receipts or be liable for any loss on reallocation or for any
default or omission for which a mortgagee in possession might be liable.
Protection of Third Parties: No person dealing with the Trustee or any Receiver,
or their respective agents, shall be concerned to enquire:
Enforceability: whether the security created by this Deed has
become enforceable; or
Right Exercisable: whether any right exercised or purported to be
exercised pursuant to this Deed has become exercisable;
or
Money Due: whether any money remains due upon the security of
this Deed; or
Conditions: as to the necessity or expediency of the conditions
subject to which any sale shall be made; or
KCDC_n367613_v1_Fin-13-825_Appendix_1_Copy_of_Report_Fin-12-593_from_28_June_Council © Simpson Grierson