Risk Management; Term Clause Samples
Risk Management; Term. The Borrower shall not, nor shall it permit any of its Restricted Subsidiaries to be party to or otherwise enter into any Hedge Contract that (i) is entered into for reasons other than as a part of its normal business operations as a risk management strategy and/or hedge against changes resulting from market conditions related to the Borrower’s operations or (ii) is longer than five years in duration.
Risk Management; Term. No Borrower shall, and no Borrower shall permit any of its Subsidiaries to, be party to or otherwise enter into any (i) Interest Hedge Agreement without the prior written consent of Lender, or (ii) Hydrocarbon Hedge Agreement unless (aa) such Hydrocarbon Hedge Agreement is an Acceptable Hydrocarbon Hedge Agreement, (bb) such Hydrocarbon Hedge Agreement does not contain any anti-assignment provisions restricting any Borrower or if such agreement contains anti-assignment provisions which cannot be removed, such provisions shall be modified to read substantially as follows: “The interest and obligations arising under this agreement are non-transferrable and non-assignable, except that [company name] may assign and grant a security interest in its rights and interests hereunder to [Independent Bank] and its assigns (the “Lender”) as security for [company’s name] present and future obligations to Lender. Until [hedge provider] is notified in writing by the Lender to pay to the Lender amounts due [company name] hereunder, [hedge provider] may continue to make such payments to [company name],” and (cc) such Hydrocarbon Hedge Agreement otherwise complies with the terms of this Agreement.