DERIVATIVE ASSETS Sample Clauses
The 'Derivative Assets' clause defines how assets related to derivative transactions are to be treated within the agreement. It typically specifies the rights, obligations, and procedures regarding the holding, transfer, or segregation of collateral or other assets used in connection with derivatives. For example, it may outline how margin is posted, how collateral is valued, or under what conditions assets can be used or substituted. The core function of this clause is to ensure clarity and security in the management of assets tied to derivative contracts, thereby reducing counterparty risk and potential disputes.
DERIVATIVE ASSETS. The Mortgagor undertakes and agrees with the Trustee as trustee for the Secured Creditors that within 10 Business Days after the accrual, offer or issue of any Derivative Assets the Mortgagor will deposit with or to the order of the Trustee or with such Delegate as the Trustee may approve for this purpose all certificate(s) or other document(s) of title relating to such Derivative Assets and, within 10 Business Days after any such accrual, offer or issue, deliver to or to the order of the Trustee or any such Delegate transfer form(s) relating to same (with the name of the transferee, the consideration and the date left blank, but otherwise duly completed) duly executed by each person in whose name such certificate(s) or other document(s) of title is to the intent the Trustee shall hold such Derivative Assets as trustee for the Secured Creditors as security for the Secured Obligations and such Derivative Assets shall be subject to the provisions of this Memorandum in all respects as if they formed part of the Shares.
DERIVATIVE ASSETS upon the accrual, offer or issue of any Derivative Assets (apart from dividends, interest payments or other payments of money, as the case may be, forming part of the Investments) which have not accrued or been offered or issued to the Security Trustee or its nominees as registered holder of the Investments to which those Derivative Assets relate deliver or pay to the Security Trustee (or procure the delivery or payment to the Security Trustee of) all such Derivative Assets and any certificates and other documents of title to or representing the same together with each of the documents required to be duly executed, completed and delivered under and in accordance with the terms of clause 5.1.2.
DERIVATIVE ASSETS. Until the security hereby constituted shall have been discharged:
(a) upon the accrual, offer or issue of any Derivative Assets, the Chargor shall, subject to Clause 4 above, deliver or pay to the Collateral Agent (or procure the delivery or payment to the Collateral Agent of) all such Derivative Assets or the certificates and other documents of title to or representing the same together with:
(i) (if any such certificate or other document is not in the name or the sole name of the Chargor) a declaration of trust in respect of the Derivative Assets in question in favour of the Chargor (and containing a power of attorney in favour of the Chargor and the Collateral Agent severally to complete any partially completed transfer or assignment as is referred to below) executed by each person other than the Chargor in whose name such certificate or other document is; and
(ii) an instrument of transfer or assignment of the relevant Derivative Assets (with the name of the transferee, the consideration and the date left blank, but otherwise duly completed), executed by each person whose name such certificate or other document of title bears; Provided that the Collateral Agent shall not complete any such transfer or assignment or take any other steps to register itself or any third party as the holder of the Derivative Assets until a Noticed Event of Default shall have occurred and provided that it is still continuing;
(b) the Chargor shall ensure that all of the Pledged Securities are and at all times remains free from any restriction on transfer; and
(c) the Chargor shall pay all calls or other payments due in respect of any part of the Pledged Securities, and in any case of default by the Chargor in this respect the Collateral Agent may if it thinks fit make any such payment on behalf of the Chargor, in which case the Chargor shall reimburse to the Collateral Agent on demand all sums so expended by the Collateral Agent together with interest at the rate for the time being payable by the Chargor to the Banks under the Credit Agreement from the date of such payment by the Collateral Agent to the date of its reimbursement by the Chargor, and, without prejudice to the provisions of Clauses 3 and 14 hereof, this Charge over Shares shall be a security to the Collateral Agent for all sums so expended by the Collateral Agent and such interest as aforesaid.