Common use of Initial S&P Ratings Event Clause in Contracts

Initial S&P Ratings Event. In the event that neither Party A nor any Relevant Entity has the Initial S&P Required Rating (an “Initial S&P Ratings Event”), then: (A) Party A shall, within the Collateral Remedy Period, post collateral in accordance with the terms of the Credit Support Annex; and (B) Party A may, at any time following the occurrence of such Initial S&P Ratings Event, at its own discretion and at its own cost: (i) transfer all of its rights and obligations with respect to this Agreement to an S&P Eligible Replacement by means of a Permitted Transfer; or (ii) procure another person that is an S&P Eligible Replacement to become a co-obligor or guarantor, with any guarantee complying with S&P relevant guarantee criteria, in respect of the obligations of Party A. The actions set out in sub-paragraphs 5(l)(1)(A) and (B) above shall be “Remedial Actions.” Without prejudice to any replacement, co-obligor or guarantor’s third party’s obligations to post collateral or take other action if it does not have the Initial S&P Required Rating, Party A will not be required to transfer any collateral in respect of such Initial S&P Ratings Event pursuant to sub-paragraph 5(l)(1)(A) above following completing a Permitted Transfer in accordance with the provisions in sub-paragraphs 5(l)(1)(B)(i) or obtaining a guarantee or co-obligor from an S&P Eligible Replacement in accordance with the provisions in sub-paragraphs 5(l)(1)(B)(ii) above and any Posted Credit Support (as defined in Paragraph 12 of the Credit Support Annex) shall be transferred to Party A in accordance with the terms of the Credit Support Annex. Following the occurrence of an Initial S&P Ratings Event (that is continuing), Party A shall, upon reasonable request of the Trust or S&P, provide notice, updates and evidence as to the actions it has taken to implement any of the measures in sub-paragraph 5(l)(1) above.

Initial S&P Ratings Event. In the event that neither Party A nor any Relevant Entity has the Initial S&P Required Rating (an “Initial S&P Ratings Event”), then: (A) Party A shall, within the Collateral Remedy Period, post collateral in accordance with the terms of the Credit Support AnnexAnnex (unless Option 3 or Option 4 has been elected in accordance with the S&P Option Substitution Provisions set forth above, in which case this sub-paragraph (A) shall not apply); and (B) Party A may, at any time following the occurrence of such Initial S&P Ratings Event, at its own discretion and at its own cost: (i) transfer all of its rights and obligations with respect to this Agreement to an S&P Eligible Replacement by means of a Permitted Transfer; or (ii) procure another person that is an S&P Eligible Replacement to become a co-obligor or guarantor, with any guarantee complying with S&P relevant guarantee criteria, in respect of the obligations of Party A. The actions set out in sub-paragraphs 5(l)(1)(A) and (B) above shall be “Remedial Actions.” Without prejudice to any replacement, co-obligor or guarantor’s third party’s obligations to post collateral or take other action if it does not have the Initial S&P Required Rating, Party A will not be required to transfer any collateral in respect of such Initial S&P Ratings Event pursuant to sub-paragraph 5(l)(1)(A) above following completing a Permitted Transfer in accordance with the provisions in sub-paragraphs 5(l)(1)(B)(i) or obtaining a guarantee or co-obligor from an S&P Eligible Replacement in accordance with the provisions in sub-paragraphs 5(l)(1)(B)(ii) above and any Posted Credit Support (as defined in Paragraph 12 of the Credit Support Annex) shall be transferred to Party A in accordance with the terms of the Credit Support Annex. Following the occurrence of an Initial S&P Ratings Event (that is continuing), Party A shall, upon reasonable request of the Trust or S&P, provide notice, updates and evidence as to the actions it has taken to implement any of the measures in sub-paragraph 5(l)(1) above.

Initial S&P Ratings Event. In the event that neither Party A nor any Relevant Entity has the Initial S&P Required Rating (an “Initial S&P Ratings Event”), then: (A) Party A shall, within the Collateral Remedy Period, post collateral in accordance with the terms of the Credit Support AnnexAnnex (unless Option 3 or Option 4 has been elected in accordance with the S&P Option Substitution Provisions set forth above, in which case this sub-paragraph (A) shall not apply); and (B) Party A may, at any time following the occurrence of such Initial S&P Ratings Event, at its own discretion and at its own cost: (i) transfer all of its rights and obligations with respect to this Agreement to an S&P Eligible Replacement by means of a Permitted Transfer; or (ii) procure another person that is an S&P Eligible Replacement to become a co-obligor or guarantor, with any guarantee complying with S&P relevant guarantee criteria, in respect of the obligations of Party A. The actions set out in sub-paragraphs 5(l)(1)(A5(k)(1)(A) and (B) above shall be “Remedial Actions.” Without prejudice to any replacement, co-obligor or guarantor’s third party’s obligations to post collateral or take other action if it does not have the Initial S&P Required Rating, Party A will not be required to transfer any collateral in respect of such Initial S&P Ratings Event pursuant to sub-paragraph 5(l)(1)(A5(k)(1)(A) above following completing a Permitted Transfer in accordance with the provisions in sub-paragraphs 5(l)(1)(B)(i5(k)(1)(B)(i) or obtaining a guarantee or co-obligor from an S&P Eligible Replacement in accordance with the provisions in sub-paragraphs 5(l)(1)(B)(ii5(k)(1)(B)(ii) above and any Posted Credit Support (as defined in Paragraph 12 of the Credit Support Annex) shall be transferred to Party A in accordance with the terms of the Credit Support Annex. Following the occurrence of an Initial S&P Ratings Event (that is continuing), Party A shall, upon reasonable request of the Trust or S&P, provide notice, updates and evidence as to the actions it has taken to implement any of the measures in sub-paragraph 5(l)(15(k)(1) above.