Guarantied Hedge Agreements Clause Samples
The Guarantied Hedge Agreements clause defines which hedge agreements are covered or guaranteed under a contract, typically by a guarantor. In practice, this clause specifies the types of financial derivative contracts—such as interest rate swaps or currency hedges—that are included, and clarifies the obligations of the guarantor regarding these agreements. Its core function is to ensure that certain hedging transactions receive the benefit of a guarantee, thereby reducing credit risk for counterparties and providing clarity on the scope of guaranteed obligations.
Guarantied Hedge Agreements. No Hedge Bank that obtains the benefits of Section 8.03 or the Guaranty by virtue of the provisions hereof or of the Guaranty shall have any right to notice of any action or to consent to, direct or object to any action hereunder or under any other Loan Document or otherwise other than in its capacity as a Lender and, in such case, only to the extent expressly provided in the Loan Documents. Notwithstanding any other provision of this Article IX to the contrary, the Administrative Agent shall not be required to verify the payment of, or that other satisfactory arrangements have been made with respect to, Obligations arising under Guarantied Hedge Agreements unless the Administrative Agent has received a Guarantied Party Designation Notice of such Obligations, together with such supporting documentation as the Administrative Agent may request, from the applicable Hedge Bank, as the case may be.