Hedging Strategy. Borrower shall be in compliance with the Hedging Strategy with respect to each Advance. Borrower shall have directed the Hedge Counterparty to deposit into the Collection Account all Swap Payments payable to the Borrower in respect of any Interest Rate Hedging Agreement and any Interest Rate Hedging Transaction thereunder.
Hedging Strategy. 4.01 The Borrower acknowledges the significance of addressing the interest rate risk inherent in this Agreement in cooperation with the Lender. Along these lines:
4.01.01 the Borrower undertakes to establish, together with the Lender, mechanisms to monitor the interest rate exposure and evaluate available hedge strategies;
4.01.02 the Borrower invites the Lender to provide on a regular basis hedging ideas and products; and
4.01.03 the Borrower undertakes that it may enter into a Designated Transaction so as to limit its exposure under this Agreement to interest rate fluctuations on terms and conditions mutually agreed between the Borrower and the Lender.
4.02 Any Designated Transaction shall be entered into on the basis of the Master Agreement and pursuant to the strategy set out herein and shall be concluded with the Lender.
4.03 No Designated Transaction may be entered into by the Borrower:
4.03.01 if there is a Material Adverse Effect in relation to any one or more of the Security Parties or any other member of the Group and/or if any other Event of Default or a Potential Event of Default occurs;
4.03.02 for a period longer than five (5) years, commencing from the Drawdown Date;
4.03.03 for an amount which, when aggregated with the amount of any other Designated Transaction entered by the Borrower will not, at any relevant time, exceed the amount of the Facility, as reducing from time to time thereafter pursuant to Clause 11.01 so that the notional principal amount of the continuing Designated Transactions does not (taking into account the scheduled amortisation) exceed at any relevant time the amount of the Facility as reducing from time to .time thereafter pursuant to Clause 11.01;
4.03.04 if the Lender determines that at the relevant time the Swap Exposure exceeds, or might exceed as a result thereof, the Maximum Permitted Swap Exposure;
4.04 Notwithstanding any provision of this Agreement and/or the Master Agreement to the contrary, if for any reason a Designated Transaction has been entered into but the Facility is not drawn under this Agreement then, subject to clause 4.05, the Lender shall be entitled but not obliged (and, where relevant, may do so without the consent of the Borrower where it would otherwise be required whether under the Master Agreement or otherwise) to amend, supplement, cancel, net out, terminate, liquidate, transfer or assign all or any part of the rights, benefits and obligations created by such Designated Transaction and/or...
Hedging Strategy. Borrower shall implement and maintain a Hedging Strategy that is reasonably acceptable to Lender.
Hedging Strategy. From the date of this Agreement until the Final Maturity Date, the Borrower shall maintain and implement the Hedging Policy.
Hedging Strategy. The Borrower has implemented an interest rate hedging strategy for the purpose of providing protection against fluctuations in interest rates and will maintain such hedging strategy during the term of this Agreement.
Hedging Strategy. Borrower shall have implemented and maintained a Hedging Strategy that is reasonably acceptable to Lender. For the avoidance of doubt, the obligation of Borrower to implement and maintain a reasonably acceptable Hedging Strategy under this Section 4.02(k) shall not derogate from the right of Lender to make a determination resulting in an Advance Rate Reduction.
Hedging Strategy. The Issuer shall implement and maintain a hedging strategy that is reasonably acceptable to the Controlling Note Purchaser; provided, that, for purposes of this subparagraph (h), a hedging strategy consisting of the Seller sponsoring one or more securitizations of pools of Receivables at least every 120 days during the term of the Class A Notes shall be deemed acceptable to the Controlling Note Purchaser.
Hedging Strategy. (a) At all times on and after the Closing Date, the Borrower shall have established and shall maintain one or more Hedge Agreements with an aggregate notional schedule provided by the Administrator on behalf of the Borrower and acceptable to the Lender and consistent with a strategy designed to offset the risk of interest rate movements, which strategy (the "Hedge Strategy") shall include, without limitation, the execution of Hedge Agreements which (i) are calculated to avoid or remedy any Excess Spread Deficiency or Swap Spread Deficiency, (ii) provide that the notional amounts thereunder shall amortize according to the expected amortization of the Aggregate Loan Balance as of the date of execution of each such Hedge Agreement (assuming a prepayment speed of 1.2% ABS) and (iii) in the aggregate, shall cover 100% of the then Aggregate Loan Balance (as adjusted from time to time pursuant to the terms hereof). The Borrower shall deliver to the Secured Party a copy of each Hedge Agreement entered into between the Borrower and any other Person and each confirmation related thereto. As additional security hereunder, the Borrower shall, pursuant to the Auto Fund Security Agreement, assign to the Lender all rights (but none of the obligations) of the Borrower under each Hedge Agreement, including, but not limited to, all present and future amounts payable by a Hedge Counterparty to the Borrower under or in connection with such Hedge Agreement, and all such amounts payable by a Hedge Counterparty shall be paid by it directly to the Collection Account. The Borrower acknowledges that, as a result of such assignment, it may not, without the prior written consent of the Lender, exercise any rights under any Hedge Agreement that would adversely affect the rights of the Lender, as the beneficiary of the Borrower's assignment of its rights under such Hedge Agreement to the Lender; provided that nothing herein or in the Auto Fund Security Agreement shall have the effect of releasing the Borrower from any of its obligations under a Hedge Agreement nor be construed as requiring the consent of the Lender for the performance of the Borrower's obligations thereunder.
(b) Each Hedge Agreement shall provide that if the Hedge Counterparty or any party providing credit support on its behalf suffers a Hedge Counterparty Downgrade Event, the Hedge Counterparty will be required to (i) transfer (at its own cost) all of its rights and obligations under its Hedge Agreement to an Eligibl...
Hedging Strategy. (1) The Borrower shall comply with the Hedging Strategy Letter.
(2) The Borrower shall not enter into any External Hedging Agreement without the prior consent of the Agent (not to be unreasonably withheld to an External Hedging Agreement which is consistent with the strategy outlined in (the Hedging Strategy Letter)).
Hedging Strategy. The Guarantor shall implement the Hedging Strategy as may be required pursuant to Schedule 1 (Hedging Strategy).
