Underlying Instrument Clause Samples
The 'Underlying Instrument' clause defines the specific asset, security, or financial product upon which a derivative contract or financial agreement is based. In practice, this clause identifies the reference item—such as a stock, bond, commodity, or index—that determines the value and settlement terms of the related contract. By clearly specifying the underlying instrument, the clause ensures both parties understand exactly what asset the agreement pertains to, thereby reducing ambiguity and potential disputes over contract performance or valuation.
Underlying Instrument neither you nor us:
(i) acquire any interest in, or right to, acquire; and
(ii) is obliged to sell, purchase, hold, deliver or receive any Underlying Instrument;
Underlying Instrument. Upon conveyance of the related Underlying Instruments, the Purchaser, the Collateral Custodian will be in possession of all documents related to such Underlying Instrument necessary to enforce the rights and remedies (as assigned in accordance with the Transaction Documents) in respect of such Collateral Obligation against the Obligor in accordance with the related Underlying Instrument.
Underlying Instrument. The [Credit] [Loan] Documents (as defined in the Credit Agreement), and all other documents and agreements under which the Loan or any part thereof has been created and all material documents and agreements relating thereto, and all amendments, waivers and consents thereto. The form of assignment and acceptance agreement contemplated by the Credit Agreement shall be substantially in the form specified in the Credit Agreement.
Underlying Instrument. Notwithstanding any term hereof (or any term of the UCC that might otherwise be construed to be applicable to a “securities intermediary” as defined in the UCC) to the contrary, none of the Collateral Agent, the Account Bank, the Collateral Custodian nor any securities intermediary shall be under any duty or obligation in connection with the acquisition by the Borrower, or the Pledge by the Borrower to the Collateral Agent, of any Collateral Obligation in the nature of a loan or a participation in a loan to examine or evaluate the sufficiency of the documents or instruments delivered to it by or on behalf of the Borrower under the related Underlying Instruments, or otherwise to examine the Underlying Instruments, in order to determine or compel compliance with any applicable requirements of or restrictions on transfer (including without limitation any necessary consents), or to treat such loan or participation as a financial asset. The Collateral Agent shall hold any Instrument delivered to it evidencing any Collateral Obligation Pledged to the Collateral Agent hereunder in accordance with the terms of this Agreement.