SPECIAL HEDGE TERMS AND CONDITIONS. If the Borrowers are unable to obtain a Hedge with a fixed rate of interest (with respect to a Swap) or a notional interest rate (with respect to a Cap) that is equal to or less than the Hedge Rate, the Borrowers may obtain a Hedge (a "SHORTFALL HEDGE") at an interest rate in excess of the Hedge Rate if the Borrowers provide Fannie Mae with Shortfall Cash Collateral in an amount at least equal to the aggregate amount of all interest that would accrue on the initial notional principal amount of such Shortfall Hedge at an assumed interest rate equal to the difference between the interest rate with respect to such Shortfall Hedge and the Hedge Rate for the full term of such Shortfall Hedge. Such Shortfall Cash Collateral shall be released by Fannie Mae upon the expiration of the Hedge Period with respect to the Shortfall Hedge, provided, however, that if the Related Bonds will bear interest at the Variable Rate or in a Reset Period of less than the Required Hedge Term,
SPECIAL HEDGE TERMS AND CONDITIONS. If Owner is unable to obtain a Hedge with a fixed rate of interest (with respect to a Swap) or a notional interest rate (with respect to a Cap) that is equal to or less than the Hedge Rate, Owner may obtain a Hedge (a "SHORTFALL HEDGE") at an interest rate in excess of the Hedge Rate if Owner provides Xxxxxx Mae with Hedge Shortfall Cash Collateral in an amount at least equal to the aggregate amount of all interest that would accrue on the initial notional principal amount of such Shortfall Hedge at an assumed interest rate equal to the difference between the interest rate with respect to such Shortfall Hedge and the Hedge Rate for the full term of such Shortfall Hedge. Such Hedge Shortfall Cash Collateral shall be released by Fannie Mae upon Owner providing either (i) a Hedge that meets the requirements of this section 3.1, or (ii) an Additional Mortgaged Property ("ALTERNATIVE HEDGE SHORTFALL COLLATERAL") as collateral for the Xxxxxx Xxx Credit Facility in accordance with section 5.4, provided, that such Alternative Hedge Shortfall Collateral has annual Net Operating Income, as determined by Xxxxxx Mae in its discretion, at least equal to 125% of the product of (A) the difference between the actual hedge rate (i.e. the actual fixed rate payable under a Swap or the notional interest rate for a Cap) of the Shortfall Hedge and the Hedge Rate, multiplied by (B) the outstanding amount of Related Bonds in the Facility with respect to which such Hedge is required. Such Hedge Shortfall Cash Collateral or Alternative Hedge Shortfall Collateral shall be released by Xxxxxx Xxx upon the expiration of the Hedge Period with respect to the Shortfall Hedge, provided, however, that if the Related Bonds will bear interest at the Weekly Variable Rate or in a Reset Period of less than five (5) years, prior to any release of such Hedge Shortfall Cash Collateral or Alternative Hedge Shortfall Collateral, Owner shall have obtained a new Hedge with respect to such Related Bonds satisfying the requirements of this section 3.1.
