Security for Hedging Clause Samples

The 'Security for Hedging' clause establishes a requirement for one party to provide collateral or other forms of security to support its obligations related to hedging transactions. In practice, this may involve the posting of cash, letters of credit, or other acceptable assets to cover potential exposures arising from derivative contracts or similar financial instruments. By mandating such security, the clause helps mitigate counterparty risk and ensures that the party exposed to market fluctuations has a financial safeguard in place, thereby promoting stability and trust in the hedging arrangement.
Security for Hedging. Agreements For the avoidance of doubt, the Security Interest created by the Security Documents shall also secure the Borrower's obligations under the Hedging Agreements on a pro rata basis, but such security position shall in all respect be subordinated to the Lenders, and be subject to a subordinated distribution of proceeds in accordance with Clause 29.6 (Partial payments). The Hedge Providers shall not take any action to enforce any of its rights under any of the Security Documents in respect of the Hedging Agreements unless and until all monies outstanding to the other Finance Parties have been fully and irrevocably repaid. The Borrower shall ensure that the Mortgage be amended to cover any and all Hedging Agreements entered into subsequent to the date of the Mortgage, on terms acceptable to the Security Agent and without undue delay from entry into of any such Hedging Agreement, in order to secure that any liability of the Borrower under any and all Hedging Agreements are secured under the Mortgage.
View SourceView Similar (2)
Security for Hedging. Agreements For the avoidance of doubt, the Security Interest created by the Security Documents shall also secure the Borrower's obligations under the Hedging Agreements on a pro rata basis, but subject to a subordinated distribution of proceeds in accordance with Clause 29.5 (Partial payments). The Borrower shall ensure that the Mortgage be amended to cover any and all Hedging Agreements entered into subsequent to the date of the Mortgage, on terms acceptable to the Security Agent and without undue delay from entry into of any such Hedging Agreement, in order to secure that any liability of the Borrower under any and all Hedging Agreements are secured under the Mortgage.
View SourceView Similar (2)
Security for Hedging. Agreements (a) For the avoidance of doubt, the Security Interest created by the Security Documents shall also secure the Borrowers' obligations under the Hedging Agreements on a pro rata basis, but subject to a subordinated distribution of proceeds in accordance with Clause 29.5 (Partial payments). (b) Each Borrower shall ensure that the Mortgages be amended to cover any and all Hedging Agreements entered into subsequent to the date of any of the Mortgages, on terms acceptable to the Security Agent and without undue delay from entry into of any such Hedging Agreement, in order to secure – subject to a subordinated distribution of proceeds in accordance with Clause 29.5 (Partial payments) - that any liability of the Borrowers under any and all Hedging Agreements are secured under the Mortgages.
View Source

Related to Security for Hedging

  • Security Forms SECTION 201.

  • Security for the Obligations To secure the payment and performance by Borrowers of the Obligations hereunder, each Borrower grants, under and pursuant to the Security Agreement executed by Borrowers dated as of the date hereof, to Lender, its successors and assigns, a continuing, first-priority security interest in, and does hereby assign, transfer, mortgage, convey, pledge, hypothecate and set over to Lender, its successors and assigns, all of the right, title and interest of each Borrower in and to the Collateral, whether now owned or hereafter acquired, and all proceeds (including, without limitation, all insurance proceeds) and products of any of the Collateral. At any time upon Lender’s request, Borrowers shall execute and deliver to Lender any other documents, instruments or certificates requested by Lender for the purpose of properly documenting and perfecting the security interests of Lender in and to the Collateral granted hereunder, including any additional security agreements, mortgages, control agreements, and financing statements.

  • Security for Obligations This Agreement secures, and the Collateral is collateral security for, the prompt and complete payment or performance in full when due, whether at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise (including the payment of amounts that would become due but for the operation of the automatic stay under Section 362(a) of the Bankruptcy Code, 11 U.S.C. §362(a) (and any successor provision thereof)), of all Obligations with respect to every Grantor (the “Secured Obligations”).

  • Security for the Loan The Loan will be evidenced, secured and guaranteed by the Loan Documents.

  • Security for Payment To secure payment of all obligations due hereunder, the Customer hereby grants to Custodian a continuing security interest in and right of setoff against each Account and all Property held therein from time to time in the full amount of such obligations; provided that, if there is more than one Account and the obligations secured pursuant to this Section can be allocated to a specific Account or the Portfolio related to such Account, such security interest and right of setoff will be limited to Property held for that Account only and its related Portfolio. Should the Customer fail to pay promptly any amounts owed hereunder, Custodian shall be entitled to use available Cash in the Account or applicable Account, as the case may be, and to dispose of Securities in the Account or such applicable Account as is necessary. In any such case and without limiting the foregoing, Custodian shall be entitled to take such other action(s) or exercise such other options, powers and rights as Custodian now or hereafter has as a secured creditor under the New York Uniform Commercial Code or any other applicable law.