Independent Amounts Sample Clauses
The Independent Amounts clause requires one or both parties in a financial contract to post additional collateral beyond the calculated exposure. This extra collateral acts as a buffer and is typically specified in the contract, either as a fixed amount or a percentage of the transaction value, and is held alongside regular margin requirements. Its core practical function is to provide extra security against counterparty default, thereby reducing credit risk and enhancing the overall stability of the transaction.
Independent Amounts. In the event that an Independent Amount has been agreed for a Party in Clause 14.9, such amount shall be added to the Exposure of the other Party when determining the Credit Support Amount of such other Party, and shall be deducted from its own Exposure when determining its own Credit Support Amount.
Independent Amounts. (i) Addition to Paragraph 12: The “S&P Independent Amount” means, for any Valuation Date, (i) if a Ratings Event I with respect to S&P has not occured, zero, or (ii) otherwise, the sum of (x) the Secured Party’s Exposure for such Valuation Date and (y) the sum of the Volatility Buffers determined by the Valuation Agent with respect to each Transaction subject to the Agreement.