Article 53 - Enforcement rights in respect of Financial Collateral
(1) If the
Debtor is in Default under a Security Agreement relating to a Security Interest in Financial Collateral, the Secured Party may collect, enforce and dispose of or accept the Financial Collateral:
(A) in the case of
Investment Property, by selling it and applying the net proceeds of sale in or towards the discharge of the secured obligations; or
(B) by appropriating the
Financial Collateral as the own Secured Party's Personal Property by setting off its value against, or applying its value in or towards the discharge of the secured obligations, provided in the case of Investment Property that the Security Agreement provides for realisation in this manner and specifies the basis on which such Collateral is to be valued for this purpose.
Security Agreement may provide that if a default occurs before the secured obligations have been fully discharged, either or both of the following shall occur, or may at the election of the Secured Party occur, whether through the operation of netting or set-off or otherwise:
(A) the respective obligations of the parties are accelerated so as to be immediately due and expressed as an obligation to pay an amount representing their estimated current value or are terminated and replaced by an obligation to pay such an amount;
(B) an account is taken of what is due from each party to the other in respect of such obligations and a net sum equal to the balance of the account is payable to the other party by the party from whom the larger amount is due.