[Replacement Hedge Agreement] Sample Clauses

A Replacement Hedge Agreement clause defines the process and conditions under which a party may enter into a new hedging contract if the original hedge is terminated or becomes ineffective. Typically, this clause outlines the requirements for the replacement agreement to match the economic terms and risk profile of the original, and may specify notification or consent procedures. Its core function is to ensure continuity of risk management and financial protection for the parties, minimizing disruption and uncertainty if the original hedge cannot be maintained.
[Replacement Hedge Agreement]. [If the Hedge Agreement is terminated, the Issuer shall enter into a replacement Hedge Agreement with a replacement Hedge Provider in form and substance satisfactory to the Servicer and subject to satisfaction of the Rating Agency Condition. In order to pay any upfront amounts that are required to be paid to a replacement Hedge Provider in order to procure a replacement Hedge Agreement, amounts may be withdrawn first, from the Hedge Termination Account and second, if amounts in the Hedge Termination Account are insufficient to fund such payments, from the Collection Account.]
[Replacement Hedge Agreement]. Upon a request by the Insurer pursuant to Section 4.05 of the Insurance Agreement, the Issuer shall enter into a Replacement Hedge Agreement (as such term is defined in Section 4.05 of the Insurance Agreement) with a replacement Hedge Provider or replacement Hedge Providers in form and substance satisfactory to the Insurer. With the consent of the Controlling Party, amounts may be withdrawn first, from the Hedge Termination Account to fund any up-front payments that are owed to a replacement Hedge Provider and second, if amounts in the Hedge Termination Account are insufficient to fund such payments, from the Collection Account.