GENERAL HEDGE TERMS AND CONDITIONS. Each Hedge shall be (i) obtained on terms and conditions approved by Fannie Mae in its discretion, (ii) evidenced and governed by Hedge Documents in form and substance acceptable to Fannie Mae in its discretion and (iii) with a counterparty acceptable to Fannie Mae in its discretion (a "COUNTERPARTY"). Except as provided in section 3.2(e), if any Hedge required under this Agreement constitutes a Swap, such Swap shall provide for a fixed rate of interest equal to or less than the Hedge Rate, and if any Hedge required under this Agreement constitutes a Cap, such Cap shall require the Counterparty with respect thereto to make interest payments equal to the amount by which the notional interest rate payable under the terms of the Hedge Documents with respect to such Cap exceeds the Hedge Rate.
GENERAL HEDGE TERMS AND CONDITIONS. Each Hedge shall be (a) obtained on terms and conditions approved by Fannxx Xxx, (x) evidenced and governed by Hedge Documents in form and substance acceptable to Fannxx Xxx, (c) with a hedge counterparty acceptable by Fannxx Xxx (x "COUNTERPARTY") and (d) require monthly payments. If any Hedge required under this Agreement constitutes a Swap, such Swap shall provide for a fixed rate of interest equal to or less than the Hedge Rate, and if any Hedge required under this Agreement constitutes a Cap, such Cap shall require the Counterparty to make interest payments equal to the amount by which the notional interest rate payable under the terms of the Hedge Documents with respect to such Cap exceeds the Hedge Rate.
GENERAL HEDGE TERMS AND CONDITIONS. Each Hedge shall be (i) obtained on terms and conditions approved by Xxxxxx Xxx in its discretion, (ii) evidenced and governed by Hedge Documents in form and substance acceptable to Xxxxxx Mae in its discretion and (iii) with a counterparty acceptable to Xxxxxx Xxx in its discretion (a "COUNTERPARTY"). Except as provided in section 3.1(e), if any Hedge required under this Agreement constitutes a Swap, such Swap shall provide for a fixed rate of interest equal to or less than the Hedge Rate, and if any Hedge required under this Agreement constitutes a Cap, such Cap shall require the Counterparty to make interest payments equal to the amount by which the notional interest rate payable under the terms of the Hedge Documents with respect to such Cap exceeds the Hedge Rate. The notional amount of the Hedge shall be reduced by an amount equal to amounts deposited into the Principal Reserve Fund.
