Common use of Limitation on the Exercise of Default Rights Related to Affiliate Insolvency Proceedings Clause in Contracts

Limitation on the Exercise of Default Rights Related to Affiliate Insolvency Proceedings. Notwithstanding anything to the contrary in this Agreement or any other agreement, but subject to the requirements of clause (i), Counterparty shall not be permitted to exercise any Default Right against Dealer with respect to this Agreement that is related, directly or indirectly, to a BHC Act Affiliate of Dealer becoming subject to receivership, insolvency, liquidation, resolution or similar proceedings (“Insolvency Proceedings”), except to the extent such exercise would be permitted under 12 C.F.R. § 252.84, 12 C.F.R. § 47.5, or 12 C.F.R. § 382.4, as applicable. After a BHC Act Affiliate of Dealer has become subject to Insolvency Proceedings, if Counterparty seeks to exercise a Default Right against Dealer with respect to this Agreement, Counterparty shall have the burden of proof, by clear and convincing evidence that the exercise of such Default Right is permitted hereunder.