Common use of Financial Futures Contracts and Options Clause in Contracts

Financial Futures Contracts and Options. Subject to the adoption by Beneficiary’s Board of Directors or Investment Committee of a separate written policy specifying the types of risk-limiting practices approved for the Beneficiary, Investments may be made in financial futures contracts or in put and call options. Investments in such contracts or options shall be made under terms and conditions required by a federal regulatory agency but only to the extent that such financial futures contracts and options are entered into or acquired as part of a hedging transaction. For purpose of this provision, a “hedging transaction” shall mean the opening or closing (as such transaction may be adjusted from time to time) of one or more financial futures contracts or options which can reasonably be expected to minimize or reduce the price, interest rate, or foreign currency risk relating to those assets or liabilities which are subject to the hedging transaction.

Financial Futures Contracts and Options. Subject to the adoption by BeneficiaryCeding Company’s Board of Directors or Investment Committee of a separate written policy specifying the types of risk-limiting practices approved for the BeneficiaryCeding Company, Investments may be made in financial futures contracts or in put and call options. Investments in such contracts or options shall be made under terms and conditions required by a federal regulatory agency but only to the extent that such financial futures contracts and options are entered into or acquired as part of a hedging transaction. For purpose of this provision, a “hedging transaction” shall mean the opening or closing (as such transaction may be adjusted from time to time) of one or more financial futures contracts or options which can reasonably be expected to minimize or reduce the price, interest rate, or foreign currency risk relating to those assets or liabilities which are subject to the hedging transaction.