Program Support Agreement Downgrade Provisions Clause Samples
The Program Support Agreement Downgrade Provisions define the actions and requirements that come into effect if a party to the agreement, typically a guarantor or credit support provider, experiences a downgrade in its credit rating. These provisions may require the downgraded party to provide additional collateral, obtain a replacement guarantor, or take other steps to mitigate increased credit risk. By establishing clear procedures and remedies in the event of a downgrade, this clause helps protect the other party from heightened financial exposure and ensures the ongoing security of the agreement.
Program Support Agreement Downgrade Provisions. Notwithstanding the other provisions of this Section 3.2, an Alternate Investor shall not be required to make a Downgrade Draw (or provide for the issuance of a letter of credit in lieu thereof) pursuant to Section 3.2(a) at a time when such Alternate Investor has a downgrade collateral account (or letter of credit in lieu thereof) established pursuant to the Program Support Agreement relating to the transactions contemplated by this Agreement to which it is a party in an amount at least equal to its unused Commitment, and the related Class Agent may apply monies in such downgrade collateral account in the manner described in Section 3.3(b) as if such downgrade collateral account were a Downgrade Collateral Account.
Program Support Agreement Downgrade Provisions. Notwithstanding the other provisions of this Section 2.14, a Bank Investor shall not be required to make a Downgrade Draw (or provide for the issuance of a letter of credit in lieu thereof) pursuant to Section 2.14(a) at a time when such Bank Investor has a downgrade collateral account (or letter of credit in lieu thereof) established pursuant to the Program Support Agreement to which it is a party in an amount at least equal to its Commitment, and the Agent may apply monies in such downgrade collateral account in the manner described in Section 2.15(b) as if such downgrade collateral account were a Downgrade Collateral Account.
Program Support Agreement Downgrade Provisions. Notwithstanding the other provisions of this Section 1.2, a ▇▇ ▇▇▇▇ Institutional Lender shall not be required to make a ▇▇ ▇▇▇▇ Downgrade Draw (or provide for the issuance of a letter of credit in lieu thereof) pursuant to Section 1.2(a) of this Annex C at a time when such ▇▇ ▇▇▇▇ Institutional Lender has a downgrade collateral account (or letter of credit in lieu thereof) established pursuant to the Liquidity Purchase Agreement relating to the transactions contemplated by this Agreement to which it is a party in an amount at least equal to its unused Commitment, and the ▇▇ ▇▇▇▇ Lender Agent may apply monies in such downgrade collateral account in the manner described in Section 1.3(b) of this Annex C as if such downgrade collateral account were a ▇▇ ▇▇▇▇ Downgrade Collateral Account.
Program Support Agreement Downgrade Provisions. Notwithstanding the other provisions of this Section 7.2, an Alternate Lender shall not be required to make a Downgrade Draw (or provide for the issuance of a letter of credit in lieu thereof) pursuant to Section 7.2(a) at a time when such Alternate Lender has a downgrade collateral account (or letter of credit in lieu thereof) established pursuant to the Program Support Agreement to which it is a party in an amount at least equal to its Commitment, and the related Managing Agent may apply monies in such downgrade collateral account in the manner described in Section 7.2(b) as if such downgrade collateral account were a Downgrade Collateral Account.
Program Support Agreement Downgrade Provisions. Notwithstanding the other provisions of this Section 13.02, a Committed Lender shall not be required to make a Downgrade Draw (or provide for the issuance of a letter of credit in lieu thereof) pursuant to Section 13.02(a) at a time when such Committed Lender has a downgrade collateral account (or letter of credit in lieu thereof) established pursuant to any Program Support Agreement relating to the transactions contemplated by this Agreement to which it is a party containing an amount at least equal to its unused Commitment, and the related Managing Agent may apply monies in such downgrade collateral account in the manner described in Section 13.02(b) as if such downgrade collateral account were a Downgrade Collateral Account.