Haircut. With respect to each Transaction, Seller shall ensure that there are sufficient funds on deposit in the Over/Under Account such that following the withdrawal of the Haircut by Buyer, the balance of the Over/Under Account is equal to or greater than the minimum required balance, as set forth in the Transactions Terms Letter.
Haircut. With respect to each Transaction, Seller shall ensure that there are sufficient funds on deposit in the Wire-out Account such that following the withdrawal of the Haircut related to such Transaction by the Wire-out Agent, the balance of the Wire-out Account is equal to or greater than $0.00.
Haircut. With respect to each Advance, Borrower shall ensure that there are sufficient funds on deposit in the Over/Under Account such that following the withdrawal of the Haircut by Lender, the balance of the Over/Under Account is equal to or greater than the minimum required balance, as set forth in the Commitment Letter.
Haircut. With respect to each Transaction the subject of which are Wet Mortgage Loans, Seller shall ensure that there are sufficient funds on deposit in the Over/Under Account such that following the withdrawal of the Haircut related to such Wet Mortgage Loans by Buyer, the balance of the Over/Under Account is equal to or greater than the Minimum Required Balance.
Haircut. With respect to each Transaction for which Seller has requested Buyer fund the Purchase Price and the related Haircut to the related Approved Payee, Seller shall ensure that there are sufficient funds on deposit in the Funding Deposit Account such that following the withdrawal of the Haircut related to such Transaction by the Buyer, the balance of the Funding Deposit Account is equal to or greater than $0.00.
Haircut. With respect to each Transaction for which the related Purchase Price is being remitted by Buyer to one or more Approved Payees (other than the Disbursement Agent), Seller shall ensure that there are sufficient funds on deposit in the Over/Under Account such that following the withdrawal of the related Haircut by Buyer, the balance of the Over/Under Account is equal to or greater than the Minimum Over/Under Account Balance, as set forth in the Transactions Terms Letter. With respect to each Transaction for which the related Purchase Price is being remitted by Disbursement Agent to (a) with respect to Wet Mortgage Loans, Closing Agents and (b) with respect to Dry Mortgage Loans, the applicable warehouse lender, Seller shall ensure that there are sufficient funds on deposit in the Operating Account at least equal to the related Haircuts, in accordance with the Custodial Agreement.
Haircut. With respect to each Transaction for which the related Purchase Price is being remitted by Administrative Agent on behalf of Buyers to one or more Approved Payees, Seller shall ensure that there are sufficient funds on deposit in the Over/Under Account such that following the withdrawal of the related Haircut by Administrative Agent, the balance of the Over/Under Account is equal to or greater than the Minimum Over/Under Account Balance, as set forth in the Transactions Terms Letter.
Haircut. With respect to each Advance, an amount equal to the difference between the amount Borrower has requested Lender to send to the Approved Payee and the Collateral Value of the Mortgage Loan pledged HUD: The United States Department of Housing and Urban Development or any successor thereto.
Haircut. Within a derivatives transaction, a haircut is used slightly differently to that found in repo and securities lending transactions. A haircut is a percentage discount applied to the market value of the financial collateral to cover the worst expected price movements over the mark-to-market frequency period and a holding period if the financial collateral needs to be liquidated following a default. While initial margin tries to deal with the volatility of risk exposure, ‘haircuts’ deal with the volatility of price movements between the time the financial collateral is called and its receipt. In practice, the ISDA Credit Support Annexes use the term “Valuation Per- centage” when referring to the reciprocal term – the ‘haircut’.263 For instance, if the real value of the financial collateral asset is =C 100 and the agreed Valu- 258 Xxxxxx (n 148) 17. See also, X X Xxxxxx, Financial Derivatives Pricing (2008) 358. 259 Paragraph 3 (b), 2016 English Law CSA for Variation Margin. 260 The Minimum Transfer Amount was discussed in Chapter 5. See also, Paragraphs 2 (a), (b), 10 and 11 (b) (i) (A), (B), 1995 ISDA English Law CSA and Paragraphs 2 (a), (b) 10 and 11 (c) (i) (A), (B), 2016 English Law CSA for Variation Margin.
(1) RTS. See also, BCBS and IOSCO (n 225) 1 at 20. 262 Xxxxxxx and Xxxxxxx (n 15) 80. 263 Paragraphs 10 and 11 (b) (ii), 1995 ISDA English Law CSA and Paragraphs 10 and 11 (c) (v), 2016 English Law CSA for Variation Margin. ation Percentage is 97%, then the haircut is 3%.264 Helpfully, the BCBS/IOSCO have published a haircut schedule, which provides market participants with an important benchmark when determining applicable haircut percentages.265 Table 6: BCBS/IOSCO/RTS Haircut Schedule Cash in same currency N/A 0% Member States’ government/central bank securities < 1 year 0.5% High quality corporate/covered bonds < 1 year 1% Member States’ government/central bank securities > 1 and < 5 years 2% Member States’ government/central bank securities > 5 years 4% High quality corporate/covered bonds > 1 and < 5 years 4% High quality corporate/covered bonds > 5 years 8% Equities included in major stock indices N/A 15% Gold N/A 15% Source: BCBS/IOSCO and the RTS266 The haircut schedule is depicted in Table 6 below and is now implemented in the RTS.267 It should be noted however, that adherence to this schedule is not a man- datory requirement, but nonetheless provides market participants with an important reference point. Instead of using the schedule as o...
Haircut. With respect to each Transaction for which the related Purchase Price is being remitted by Buyer to one or more Approved Payees (other than the Disbursement Agent), Seller shall ensure that there are sufficient funds on deposit in the Over/Under Account. With respect to each Transaction for which the related Purchase Price is being remitted by Disbursement Agent to (a) with respect to Wet Mortgage Loans, Closing Agents and (b) with respect to Dry Mortgage Loans, the applicable warehouse lender or a Correspondent, Seller shall ensure that there are sufficient funds on deposit in the Disbursement Account at least equal to the related Haircuts, in accordance with the Custodial Agreement.
