Common use of Netting of Option Premiums Clause in Contracts

Netting of Option Premiums. IF AGREED IN PART V OF THE SCHEDULE AND IF, ON ANY DATE, PREMIUMS WOULD OTHERWISE BE PAYABLE UNDER THE AGREEMENT IN THE SAME CURRENCY BETWEEN THE SAME RESPECTIVE DESIGNATED OFFICES OF THE PARTIES, THEN, ON SUCH DATE, EACH PARTY'S OBLIGATION TO MAKE PAYMENT OF ANY SUCH PREMIUM WILL BE AUTOMATICALLY SATISFIED AND DISCHARGED AND, IF THE AGGREGATE PREMIUM(S) THAT WOULD OTHERWISE HAVE BEEN PAYABLE BY SUCH DESIGNATED OFFICE OF ONE PARTY EXCEEDS THE AGGREGATE PREMIUM(S) THAT WOULD OTHERWISE HAVE BEEN PAYABLE BY SUCH DESIGNATED OFFICE OF THE OTHER PARTY, REPLACED BY AN OBLIGATION UPON THE PARTY BY WHOM THE LARGER AGGREGATE PREMIUM(S) WOULD HAVE BEEN PAYABLE TO PAY THE OTHER PARTY THE EXCESS OF THE LARGER AGGREGATE PREMIUM(S) OVER THE SMALLER AGGREGATE PREMIUM(S) AND, IF THE AGGREGATE PREMIUMS ARE EQUAL, NO PAYMENT SHALL BE MADE.