Common use of Capital or Liquidity Requirements Clause in Contracts

Capital or Liquidity Requirements. If the Bank or any Participant determines that any Change in Law affecting the Bank or any Participant or any Lending Office of the Bank or the Bank’s or such Participant’s parent or holding company, if any, regarding capital or liquidity requirements has or would have the effect of either (A) affecting the amount of capital or liquidity required or expected to be maintained by the Bank or such Participant or the Bank’s or such Participant’s parent or holding company, or (B) reducing the rate of return on the Bank’s or such Participant’s capital or liquidity or on the capital or liquidity of the Bank’s or such Participant’s parent or holding company, if any, as a consequence of this Agreement or any Liquidity Advance or Term Loan made by the Bank, or the Letter of Credit issued by the Bank, to a level below that which the Bank or such Participant or the Bank’s or such Participant’s parent or holding company could have achieved but for such Change in Law (taking into consideration the Bank’s or such Participant’s policies and the policies of the Bank’s or such Participant’s parent or holding company with respect to capital and liquidity adequacy), then from time to time the City shall pay, to the extent permitted by law, to the Bank, as the case may be, such additional amount or amounts as will compensate the Bank or the Bank’s or such Participant’s parent or holding company for any such reduction suffered.

Capital or Liquidity Requirements. If the Bank or any Participant determines that any Change in Law affecting the Bank or any Participant or any Lending Office of the Bank or the Bank’s or such Participant’s parent or holding company, if any, regarding capital or liquidity requirements has or would have the effect of either (A) affecting the amount of capital or liquidity required or expected to be maintained by the Bank or such Participant or the Bank’s or such Participant’s parent or holding company, or (B) reducing the rate of return on the Bank’s or such Participant’s capital or liquidity or on the capital or liquidity of the Bank’s or such Participant’s parent or holding company, if any, as a consequence of this Agreement or any Liquidity Advance or Term Loan made by the Bank, or the Letter of Credit issued by the Bank, to a level below that which the Bank or such Participant or the Bank’s or such Participant’s parent or holding company could have achieved but for such Change in Law (taking into consideration the Bank’s or such Participant’s policies and the policies of the Bank’s or such Participant’s parent or holding company with respect to capital and liquidity adequacy), then from time to time the City shall pay, to the extent permitted by lawLaw, to the Bank, as the case may be, such additional amount or amounts as will compensate the Bank or the Bank’s or such Participant’s parent or holding company for any such reduction suffered.