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282. Right of use of a collateral-taker in collateral and obligation to return equivalent assets

(1) If a collateral arrangement which is by way of security over collateral provides for the collateral-taker to use and dispose of any collateral provided under the collateral arrangement, as if it were the owner of it, the collateral-taker may do so in accordance with the terms of the arrangement.
(2) The exercise by a collateral-taker of a right of use as described in subsection (1) shall not render invalid or unenforceable any right of the collateral-taker under such a collateral arrangement.
(3) If a collateral-taker exercises such a right of use, it is obliged to replace the original collateral by transferring equivalent collateral on or before the due date for the performance of the relevant obligations covered by the arrangement or, if the arrangement so provides, it may set off the value of the equivalent collateral against or apply it in discharge of the relevant obligations in accordance with the terms of the arrangement.
(4) The equivalent collateral which is transferred in discharge of an obligation as described in subsection (3), shall be subject to the same terms of the collateral arrangement as the original collateral was subject to and shall be treated as having been provided under the collateral arrangement at the same time as the original collateral was first provided.
(5) If a collateral-taker has an outstanding obligation to replace the original collateral with equivalent collateral, that obligation may be the subject of a netting under the applicable netting agreement in accordance with its terms.