Interest Rate Risk Management Sample Clauses
Interest Rate Risk Management. (1) Within sixty (60) days of the date of this Agreement, the Board shall adopt a revised written Interest Rate Risk Program (“IRR Program”). Refer to the “Interest Rate Risk,” booklet of the Comptroller’s Handbook; OCC Bulletin 2010-1, “Interagency Advisory on Interest Rate Risk Management,” (Jan. 2010); OCC Bulletin 2012-5, “Interest Rate Risk Management: FAQs on 2010 Interagency Advisory on Interest Rate Risk Management,” (Jan. 2012); and the “Model Risk Management,” booklet of the Comptroller’s Handbook.
(2) The IRR Program shall include risk management systems to identify, measure, monitor, and control IRR, and shall, at a minimum:
(a) provide specific assigned accountability for the development, execution, and oversight of interest rate management, including oversight by both the Board, or committee thereof, and management;
(b) include appropriate policies and procedures for identifying, measuring, monitoring, and controlling IRR exposures, that include at a minimum:
(i) Board-approved, reasonable limits on short-term and long-term IRR exposures;
(ii) standards for measuring and monitoring the Bank’s short-term and long-term IRR exposures;
(iii) the frequency of IRR measurement;
(iv) procedures to monitor, escalate, and address any breaches of Board-approved IRR limits;
(v) the responsibility and frequency for periodic evaluations of IRR model assumptions;
(vi) sound change management practices that require model assumption changes to be approved by the Board, or committee thereof, prior to implementation; and
(vii) standards and responsibility for the frequency of independent IRR model validation, backtesting, and IRR audit;
(c) include accurate and timely risk identification and monitoring processes which quantify both an earnings-at-risk and economic value perspective with recognition of all IRRs (repricing, basis, yield-curve, and options), to include at a minimum:
(i) IRR reporting procedures that specify the frequency and types of reports management and the Board will use to monitor the Bank’s IRR that address:
(1) the level and trends of aggregate short-term and long-term IRR exposures;
(2) whether management’s strategies are within the Board’s established risk appetite and Bank policy; and
(3) as needed, actions management must take to bring interest rate exposures back within Board-approved tolerance limits;
(d) include adequate and documented support for the reasonableness of assumptions used in the Bank’s IRR model; and
(e) include require...
Interest Rate Risk Management. Within 60 days of this Agreement, the Bank shall submit to the Reserve Bank and the Division an acceptable written plan to improve interest rate risk management practices. The plan shall, at a minimum, address the following parameters:
Interest Rate Risk Management. The Borrower agrees that, upon the occurrence of any Hedging Event, it will enter into an Acceptable Derivatives Agreement in consultation with the Agent no later than the last day of the Required Time Period, using funds available under clause (y) of clause fifth of Section 2.07(c)(i), (ii) or (iii), as applicable. The Borrower will, to the extent required by any Committed Lender, amend any Acceptable Derivatives Agreement which is then in effect at any time when there is (i) any increase in the outstanding principal amount of the Loans or (ii) any change in the contractual payment schedule of the Loans, so that such Acceptable Derivatives Agreement, as amended, would comply with the definition of “Acceptable Derivatives Agreement” if first entered into on the date of such amendment. Amounts received by the Borrower under any Acceptable Derivatives Agreement shall be deposited into the Collection Account and applied as set forth in Section 2.07(c).
Interest Rate Risk Management. Within ninety (90) days, the Association shall revise its policies and procedures governing the Association’s interest rate risk (IRR) management (IRR Policy) to ensure that it is acceptable to the Regional Director and addresses all corrective actions in the 2010 ▇▇▇ related to IRR. The Association’s IRR Policy shall comply with all applicable laws, regulations and regulatory guidance.
Interest Rate Risk Management. All interest rate swaps, caps, floors and option agreements and other interest rate risk management arrangements, whether entered into the account of Wachovia or one of its Subsidiaries or for the account of a customer of Wachovia or one of its subsidiaries, were entered into in the ordinary course of business and in accordance with prudent banking practice and applicable rules, regulations and policies of Regulatory Authorities and with counterparties believed by Wachovia to be financially responsible at the time and are legal, valid and binding obligations of Wachovia or one of its subsidiaries enforceable in accordance with their terms (except as may be limited by bankruptcy, insolvency, moratorium, reorganization or similar laws affecting the rights of creditors generally and the availability of equitable remedies), and are in full force and effect. Wachovia and each of its subsidiaries have duly performed in all material respects all of their obligations thereunder to the extent that such obligations to perform have accrued; and there are no material breaches, violations or defaults or allegations or assertions of such by any party thereunder.
Interest Rate Risk Management. Borrowers shall purchase and maintain in full force and effect during the term of this Agreement, effective on or before thirty (30) days following the Closing Date, an interest rate swap, interest rate cap, interest rate collar or similar arrangement designed to protect Borrowers against the effect of fluctuations in the Interest Rate, such arrangement and related agreements to be in form and substance reasonably acceptable to Agent.
Interest Rate Risk Management. (a) From the date that is 30 days following the Closing Date, the Borrower will enter into, and maintain in effect at all times until the earlier of (i) the Maturity Date or (ii) the Termination Date, one or more Derivatives Agreements, which shall be interest rate “caps” or at-the-market interest rate “swaps” (including forward-starting swaps) subject to a 2002 ISDA Master Agreement between the Borrower and a Derivatives Creditor and either (x) in form and substance reasonably acceptable to the Administrative Agent or (y) containing provisions of general application which are substantially the same as and not inconsistent with those contained in the Derivatives Agreement with ▇▇▇▇▇ Fargo or one of its Affiliates, in its capacity as a Derivatives Creditor, with an effective aggregate notional balance equal to or exceeding 80% (but not more than 110%) of the then outstanding principal amount of the Loans, such requirement to be confirmed in writing in the Compliance Certificate. With respect to any Derivatives Agreement constituting an interest rate cap, the strike rate with respect to such interest rate cap shall not exceed 3.50%. Such Derivatives Agreements shall provide that notional balances may be adjusted downward from time to time to reflect any prepayments of the Loans.
(b) All payments received from all such Derivatives Agreements shall be deposited directly into the Collection Account.
Interest Rate Risk Management. (a) On the Closing Date, the Borrower will enter into, and maintain until the earlier of (i) the Expected Maturity Date or (ii) the Termination Date, one or more Derivatives Agreements with an aggregate notional balance equal to or exceeding ninety percent (90%) (but not for any period in excess of 30 consecutive days, more than 110%) of the then Scheduled Targeted Principal Balance. On the Expected Maturity Date (unless the Termination Date has occurred), at the request of the Agent, the Borrower will enter into, and maintain until the Termination Date, one or more Derivatives Agreements with an aggregate notional balance equal to or exceeding ninety percent (90%) (but not for any period in excess of 30 consecutive days, more than 110%) of the then outstanding principal amount of the Loans. Such Derivative Agreements shall provide that notional balances may be adjusted downward from time to time to reflect any prepayments of the Loans.
(b) If the Borrower, or the Servicer, on behalf of the Borrower, fails to comply with Section 2.13(a), the Required Lenders shall have the right, in their sole discretion and at the expense of the Borrower if necessary (as determined in the sole discretion of the Required Lenders), to direct the Agent to enter into or maintain one or more Derivatives Agreements selected by the Required Lenders (in their sole discretion) on behalf of the Borrower such that, after giving effect to such action, the Borrower will be in compliance with Section 2.13(a) . In the event the Required Lenders determine to direct the Agent to enter into or maintain a Derivatives Agreement on the Borrower’s behalf, the Required Lenders shall promptly send a copy of any such agreement to the Borrower. Reasonable costs and expenses of the Required Lenders related to the entry into and maintenance of Derivatives Agreements shall be paid by the Borrower.
(c) If, at any time while the Loans or other obligations under the Transaction Documents remain unpaid, a Derivatives Creditor ceases to be an Eligible Derivatives Creditor, the Borrower shall within sixty (60) days after it obtains Knowledge of such event, either (i) replace the non-conforming Derivatives Creditor with an Eligible Derivatives Creditor or (ii) require the non-conforming Derivatives Creditor to deliver a letter of credit or provide alternative credit support in order to support its obligations under the Derivatives Agreement, as the Borrower and such non-conforming Derivatives Creditor may a...
Interest Rate Risk Management. (1) Within sixty (60) days of this Agreement, the Board shall prepare, adopt, and thereafter ensure Bank adherence to a written interest rate risk program (including appropriate policies and procedures) that provides for a coordinated interest rate risk strategy and is consistent with the guidelines set forth in Interest Rate Risk, L-IRR, of the Comptroller’s Handbook (June 1997) and OCC Bulletin 2000-16, Risk Modeling – Model Validation (May 30, 2000). The program shall, at a minimum, address:
(a) training and/or the addition of knowledgeable management and/or staff to ensure the Bank understands, documents, periodically reviews and adjusts as needed, the assumptions used in the Bank’s interest rate risk model;
(b) Board policies to ensure the model is administered by a knowledgeable senior manager who is independent of investment decisions;
(c) the establishment of reasonable limits on interest rate risk;
(d) implementation of effective tools to measure and monitor the Bank’s performance and overall interest rate risk profile;
(e) establishment of adequate management reports on which to base sound interest rate risk management decisions; and
(f) an independent validation of the interest rate risk model on an at least an annual basis.
Interest Rate Risk Management. Within 60 days of this Agreement, the Bank shall submit to the Reserve Bank and the DFI an acceptable written plan to improve interest rate risk management practices that are appropriate for the size and complexity of the Bank. The plan shall, at a minimum, include procedures and controls to ensure that the inputs and assumptions used to model and control the vulnerability of the Bank's net interest income due to changes in interest rates are accurate and reflect the Bank's current balance sheet structure and market conditions.