First Rating Trigger Collateral Clause Samples
The First Rating Trigger Collateral clause establishes the requirement for a party to post collateral when its credit rating falls below a specified threshold for the first time. In practice, this means that if a party’s creditworthiness is downgraded by a recognized rating agency to a certain level, it must provide additional security, such as cash or securities, to the counterparty. This clause is designed to mitigate credit risk by ensuring that the counterparty has financial protection in the event of a deterioration in the other party’s credit profile.
First Rating Trigger Collateral. Party A has failed to comply with or perform any obligation to be complied with or performed by Party A in accordance with the Credit Support Document and either (A) the Second Rating Trigger Requirements do not apply or (B) less than 30 Local Business Days have elapsed since the last time the Second Rating Trigger Requirements (as defined below) did not apply.
First Rating Trigger Collateral. If (A) it is not the case that a ▇▇▇▇▇’▇ Second Trigger Ratings Event has occurred and been continuing for 30 or more Local Business Days and (B) Party A has failed to comply with or perform any obligation to be complied with or performed by Party A in accordance with the Credit Support Annex, then an Additional Termination Event shall have occurred with respect to Party A and Party A shall be the sole Affected Party with respect to such Additional Termination Event.
First Rating Trigger Collateral. If Party A has failed to comply with or perform any obligation to be complied with or performed by Party A in accordance with the Credit Support Annex and such failure has not given rise to an Event of Default under Section 5(a)(i) or Section 5(a)(iii), then an Additional Termination Event shall have occurred with respect to Party A and Party A shall be the sole Affected Party with respect to such Additional Termination Event.
First Rating Trigger Collateral. If (A) it is not the case that a Moody's Second Trigger Ratings Event has occurred and been continuing for 30 or more Local Business Days and (B) Party A has failed to comply with or perform any obligation to be complied with or performed by Party A in accordance with the Credit Support Annex, then an Additional Termination Event shall have occurred with respect to Party A and Party A shall be the sole Affected Party with respect to such Additional Termination Event.
First Rating Trigger Collateral. If (A) it is not the case that a Moody's Second Trigger Ratings Even▇ ▇▇▇ occurred and been continuing for 30 or more Local Business Days and (B) Party A fails to comply with or perform any obligation to be complied with or performed by Party A under the Credit Support Annex.
First Rating Trigger Collateral. The First Rating Trigger Requirements apply and Party A has failed to use commercially reasonable efforts, as soon as reasonably practicable, to either (i) furnish an Eligible Guarantee of Party A’s obligations under this Agreement from a guarantor that maintains the First Trigger Required Ratings or (ii) obtain an Eligible Replacement pursuant to Part 5(f) herein that assumes the obligations of Party A under this Agreement (through a novation or other assignment and assumption agreement in form and substance reasonably satisfactory to Party B) or replaces the outstanding Transactions hereunder with transactions on identical terms or (iii) to comply with or perform any obligation to be complied with or performed by Party A in accordance with the Credit Support Document and the Second Rating Trigger Requirements do not apply.
First Rating Trigger Collateral. Party A has failed to comply with or perform any obligation to be complied with or performed by Party A in accordance with the Credit Support Annex and either (A) no ▇▇▇▇▇’▇ Second Trigger Downgrade has occurred and is continuing or (B) a ▇▇▇▇▇’▇ Second Trigger Downgrade has occurred and is continuing and less than 30 Local Business Days have elapsed since such ▇▇▇▇▇’▇ Second Trigger Downgrade first occurred; and