Common use of TERMINATION OF FUNDING 1 SWAP Clause in Contracts

TERMINATION OF FUNDING 1 SWAP. If on or prior to the date of the earlier of either (i) the reduction of the aggregate principal amount outstanding of all Intercompany Loans to zero or (ii) the service of an Intercompany Loan Acceleration Notice, the Funding 1 Swap is terminated, then the Cash Manager (on behalf of Funding 1 and the Security Trustee) shall purchase a new hedge against the possible variance between (1) the Mortgages Trustee Variable Base Rate payable on the Variable Rate Loans, the fixed rates of interest payable on the Fixed Rate Loans and the Tracker Swap Rate and (2) a LIBOR-based rate for three-month sterling deposits, on terms acceptable to Funding 1 and the Rating Agencies with a new Funding 1 swap provider whom the Rating Agencies have previously confirmed in writing will not cause the then current rating of any Notes to be downgraded. The Cash Manager may apply any early termination payment received from the Funding 1 Swap Provider pursuant to the Funding 1 Swap for such purpose.