Common use of Administration of Cash Collateral Clause in Contracts

Administration of Cash Collateral. B. Party B Eligibility to Hold Cash. [x] Party B shall be entitled to hold Performance Assurance in the form of Cash provided that the following conditions are satisfied: (1) it is not a Defaulting Party and no Material Adverse Change has occurred with respect to Party B; (2) Performance Assurance shall be held only in any jurisdiction within the United States; and (3) Performance Assurance shall be held only by a Qualified Institution. To the extent Party B is entitled to hold Cash, the Interest Rate payable to Party A on Cash shall be as selected below: Party B Interest Rate. [x] Federal Funds Effective Rate - the rate for that day opposite the caption “Federal Funds (Effective)” as set forth in the weekly statistical release designated as H.15(519), or any successor publication, published by the Board of Governors of the Federal Reserve System.