Credit Default Swaps Clause Samples
POPULAR SAMPLE Copied 1 times
Credit Default Swaps. The Transferor agrees that at any time that it enters into any Credit Default Swap, it shall execute and deliver to the Administrative Agent, for the benefit of the CP Conduit Purchasers, the Committed Purchasers and Funding Agents, an assignment of all amounts payable to the Transferor under such Credit Default Swap.
Credit Default Swaps. An Underlying Fund may enter into credit default swaps, either as a buyer or a seller of the swap. A buyer of a swap pays a fee to buy protection against the risk that a security will default. If no default occurs, an Underlying Fund will have paid the fee, but typically will recover nothing under the swap. A seller of a swap receives payment(s) in return for an obligation to pay the counterparty the full notional value of a security in the event of a default of the security issuer. As a seller of a swap, an Underlying Fund would effectively add leverage to its portfolio because, in addition to its total net assets, an Underlying Fund would be subject to investment exposure on the full notional value of the swap. Credit default swaps are particularly subject to counterparty, credit, valuation, liquidity and leveraging risks and the risk that the swap may not correlate as expected. Certain standardized swaps are subject to mandatory central clearing. Central clearing is expected to reduce counterparty credit risk and increase liquidity; however, there is no assurance that they will achieve that result, and in the meantime, central clearing and related requirements expose an Underlying Fund to new kinds of costs and risks. In addition, credit default swaps expose an Underlying Fund to the risk of improper valuation.
Credit Default Swaps. MRFC agrees that at any time that it enters into any Credit Default Swap, it shall execute and deliver to the Administrative Agent, for the benefit of the Purchasers, an assignment of all amounts payable to MRFC under such Credit Default Swap substantially in the form of Exhibit 5.01(q) (each, a “Required Credit Default Swap Assignment”).
Credit Default Swaps. Credit default swaps are a mechanism to either purchase or sell default insurance. As a purchaser of a credit default swap, the Manager pays a premium to enter into an arrangement that protects a portfolio holding in the event of a default. As a seller of a credit default swap, the Manager collects a premium for underwriting default insurance. Consequently, credit default swaps may be used to obtain credit default protection or enhance portfolio income.
Credit Default Swaps. (i) Any Credit Default Swap provided as a Credit Document shall meet the criteria set forth in Schedule 1.25 and be otherwise satisfactory in form and substance to the AG, and be issued by Bank of America or another single financial institution acceptable to the AG (an “Eligible CDS party”) with Fixed and Floating Rate Payor Calculation Amounts equal to or greater than 125% of the amount of Tranche A Payments to be supported.
(ii) ▇▇▇▇▇▇▇▇ shall prepay fees for any Credit Default Swap provided hereunder for the initial two successive calendar quarters and thereafter prepay succeeding calendar quarters one full quarter in advance of that calendar quarter. ▇▇▇▇▇▇▇▇ agrees to pay each Fixed Payment due under any Credit Default Swap entered into or obtained pursuant to this Paragraph 4.8 not less than one calendar quarter before such Fixed Payment becomes due and to deliver or cause to be delivered to the AG a written receipt from the Floating Rate Payor under such Credit Default Swap not less than eighty (80) days before such Fixed Payment becomes due.
(iii) To the extent any payment under any Credit Default Swap issued pursuant to this clause exceeds the amount owed to the AG under Tranche A, then such excess amount will be applied by the AG against ▇▇▇▇▇▇▇▇’ obligations to the AG under Tranche ▇.
Credit Default Swaps. The Transferor agrees that at any time that it enters into any Credit Default Swap (or such Credit Default Swap is contributed to the Transferor as an equity contribution), it shall execute and deliver to the Administrative Agent, for the benefit of the Purchasers, an assignment of all amounts payable to the Transferor under such Credit Default Swap, substantially in the form of Exhibit L attached hereto. Any counterparty that enters into a Credit Default Swap with the Transferor shall expressly acknowledge that the amounts payable to the Transferor under such Credit Default Swap will be assigned to the Administrative Agent, for the benefit of the Purchasers.
Credit Default Swaps. The Transferor agrees that at any time that it enters into any Credit Default Swap (or such Credit Default Swap is contributed to the Transferor as an equity contribution), it shall execute and deliver to the Administrative Agent, for the benefit of the CP Conduit Purchasers, the Committed Purchasers and Funding Agents, an assignment of all amounts payable to the Transferor under such Credit Default Swap, substantially in the form of Exhibit L attached hereto. Any counterparty that enters into a Credit Default Swap with the Transferor shall expressly acknowledge that the amounts payable to the Transferor under such Credit Default Swap will be assigned to the Administrative Agent, for the benefit of the CP Conduit Purchasers, the Committed Purchasers and Funding Agents."
(b) Amendment to Sections 6.02.(c)(ii), (iv), (vi), (vii) and (viii). Sections 6.02.(c)(ii), (iv), (vi), (vii) and (viii) of the Receivables Transfer Agreement are hereby amended by increasing the number of Sellers to be selected in each such subsections from four (4) to six (6) to reflect the addition of additional Sellers to the facility.
(c) Addition of Exhibit L to the Receivables Transfer Agreement. Exhibit L to the Receivables Transfer Agreement is hereby added to the Receivables Transfer Agreement to read in its entirety as set forth in Exhibit L attached to this Amendment.