Common use of Implications of Rating Events Clause in Contracts

Implications of Rating Events. Each of the following provisions (a) to (g) (inclusive) is without prejudice to the consequences of Party A (i) breaching any provision of this Agreement other than the subparagraph of this paragraph 7 or the paragraph of the Credit Support Annex to which each such provision refers or (ii) failing to post collateral under, or take any action required under, the Credit Support Annex, in each case in accordance with the requirements of any rating agency other than the rating agency to which each such provision refers. (a) If, Party A fails to post collateral as required by sub-paragraphs 7.1(A)(a) or 7.1(B)(a) above, such failure will not be or give rise to an Event of Default but will constitute an Additional Termination Event with respect to Party A which will be deemed to have occurred on the next Business Day (as defined in the Confirmation in respect of the Transaction under this Agreement) following the last day of the Initial Remedy Period or the Subsequent Collateral Remedy Period (as applicable) with Party A as the sole Affected Party and all Transactions as Affected Transactions. (b) If Party A does not take any of the measures described in sub-paragraph 7.1(B)(b) above, notwithstanding that reasonable efforts may have been used, (irrespective of whether Party A continues to post collateral as required by sub-paragraphs 7.1(A)(a) or 7.1(B)(a) above, and notwithstanding Section 5(a)(ii)), such failure shall not be or give rise to an Event of Default but will constitute an Additional Termination Event with respect to Party A which will be deemed to have occurred on the next Business Day (as defined in the Confirmation in respect of the Transaction under this Agreement) following the last day of the Subsequent Remedy Period (as applicable) with Party A as the sole Affected Party and all Transactions as Affected Transactions.

Implications of Rating Events. Each of the following provisions (a) to (g) (inclusive) is without prejudice to the consequences of Party A (i) breaching any provision of this Agreement other than the subparagraph of this paragraph 7 or the paragraph of the Credit Support Annex to which each such provision refers or (ii) failing to post collateral under, or take any action required under, the Credit Support Annex, in each case in accordance with the requirements of any rating agency other than the rating agency to which each such provision refers. (a) If, Party A fails to post collateral as required by sub-paragraphs 7.1(A)(a) or 7.1(B)(a) above, such failure will not be or give rise to an Event of Default but will constitute an Additional Termination Event with respect to Party A which will be deemed to have occurred on the next Business Day (as defined in the Confirmation in respect of the Transaction under this Agreement) following the last day of the Initial Remedy Period or the Subsequent Collateral Remedy Period (as applicable) with Party A as the sole Affected Party and all Transactions as Affected Transactions. (b) If Party A does not take any of the measures described in sub-paragraph 7.1(B)(b) above, notwithstanding that reasonable efforts may have been used, above (irrespective of whether Party A continues to post collateral as required by sub-paragraphs 7.1(A)(a) or 7.1(B)(a) above, and notwithstanding Section 5(a)(ii)), such failure shall not be or give rise to an Event of Default but will constitute an Additional Termination Event with respect to Party A which will be deemed to have occurred on the next Business Day (as defined in the Confirmation in respect of the Transaction under this Agreement) following the last day of the Subsequent Remedy Period (as applicable) with Party A as the sole Affected Party and all Transactions as Affected Transactions. (c) If Paragraph 11(h)(x) (S&P External Marks) of the Credit Support Annex is applicable and if Party A does not provide to S&P the External Xxxx Statement (as defined in the Credit Support Annex) in accordance with the provisions of the Credit Support Annex, such failure will not be or give rise to an Event of Default but will constitute an Additional Termination Event, which will be deemed to have occurred on the date on which Party A was obliged to provide to S&P the External Xxxx Statement in accordance with the provisions of the Credit Support Annex, with respect to Party A, with Party A as the sole Affected Party and all Transactions as Affected Transactions. (d) Any failure by Party A to comply with or perform any obligation to be complied with or performed by Party A under the Credit Support Annex in accordance with the Xxxxx’x provisions shall not be an Event of Default unless (A) the Second Rating Trigger Requirements apply and at least 30 Local Business Days have elapsed since the last time the Second Rating Trigger Requirements did not apply and (B) such failure is not remedied on or before the third Local Business Day after notice of such failure is given to Party A. Notwithstanding any other provision of this Agreement, an Event of Default will occur with respect to Party A if (i) on any Valuation Date, the Second Rating Trigger Requirements apply, and at least 30 Local Business Days have elapsed since the last time the Second Rating Trigger Requirements did not apply and Party A fails to post sufficient collateral to satisfy its obligations under the Credit Support Annex and such failure is not remedied on or before the third Local Business Day after notice of such failure is given to Party A. (e) Each of the following shall constitute an Additional Termination Event with Party A as Affected Party: (A) The Second Rating Trigger Requirements apply and 30 or more Local Business Days have elapsed since the last time the Second Rating Trigger Requirements did not apply and (B) at least one Eligible Replacement has made a Firm Offer that would, assuming the occurrence of an Early Termination Date, qualify as a Market Quotation (on the basis that paragraphs (i) and (iii) in Part 5(16) below apply) and which remains capable of becoming legally binding upon acceptance.

Implications of Rating Events. Each of the following provisions (a) to (g) (inclusive) is without prejudice to the consequences of Party A (i) breaching any provision of this Agreement other than the subparagraph of this paragraph 7 or the paragraph of the Credit Support Annex to which each such provision refers or (ii) failing to post collateral under, or take any action required under, the Credit Support Annex, in each case in accordance with the requirements of any rating agency other than the rating agency to which each such provision refers. (a) If, Party A fails to post collateral as required by sub-paragraphs 7.1(A)(a) or 7.1(B)(a) above, such failure will not be or give rise to an Event of Default but will constitute an Additional Termination Event with respect to Party A which will be deemed to have occurred on the next Business Day (as defined in the Confirmation in respect of the Transaction under this Agreement) following the last day of the Initial Remedy Period or the Subsequent Collateral Remedy Period (as applicable) with Party A as the sole Affected Party and all Transactions as Affected Transactions. (b) If Party A does not take any of the measures described in sub-paragraph 7.1(B)(b) above, notwithstanding that reasonable efforts may have been used, above (irrespective of whether Party A continues to post collateral as required by sub-paragraphs 7.1(A)(a) or 7.1(B)(a) above, and notwithstanding Section 5(a)(ii)), such failure shall not be or give rise to an Event of Default but will constitute an Additional Termination Event with respect to Party A which will be deemed to have occurred on the next Business Day (as defined in the Confirmation in respect of the Transaction under this Agreement) following the last day of the Subsequent Remedy Period (as applicable) with Party A as the sole Affected Party and all Transactions as Affected Transactions. (c) Any failure by Party A to comply with or perform any obligation to be complied with or performed by Party A under the Credit Support Annex in accordance with the Moody’s provisions shall not be an Event of Default unless (A) the Second Rating Trigger Requirements apply and at least 30 Local Business Days have elapsed since the last time the Second Rating Trigger Requirements did not apply and (B) such failure is not remedied on or before the third Local Business Day after notice of such failure is given to Party A. Notwithstanding any other provision of this Agreement, an Event of Default will occur with respect to Party A if (i) on any Valuation Date, the Second Rating Trigger Requirements apply, and at least 30 Local Business Days have elapsed since the last time the Second Rating Trigger Requirements did not apply and Party A fails to post sufficient collateral to satisfy its obligations under the Credit Support Annex and such failure is not remedied on or before the third Local Business Day after notice of such failure is given to Party A. (d) Each of the following shall constitute an Additional Termination Event with Party A as Affected Party: (A) The Second Rating Trigger Requirements apply and 30 or more Local Business Days have elapsed since the last time the Second Rating Trigger Requirements did not apply and (B) at least one Eligible Replacement has made a Firm Offer that would, assuming the occurrence of an Early Termination Date, qualify as a Market Quotation (on the basis that paragraphs (i) and (iii) in Part 5(16) below apply) and which remains capable of becoming legally binding upon acceptance.