Examples of Base Rate Modification in a sentence
Where there is no applicable Clearing System, Covered Bondholders may object in writing to a Base Rate Modification by notifying the Issuer or the Issuing and Paying Agent but any such objection in writing must be accompanied by evidence to the Bond Trustee’s satisfaction (having regard to prevailing market practices) of the relevant Covered Bondholder’s holding of the Covered Bonds.
In relation to any such Proposed Amendments, the Issuer is required, amongst other things, to certify in writing to the Note Trustee and the Security Trustee that the Issuer has provided at least 30 calendar days' notice (and where the Proposed Amendment is a Base Rate Modification, 40 calendar days' notice) to the Noteholders of each Class of the proposed modification in accordance with Condition 16 (Notice to Noteholders).
Investors should note the various circumstances under which a Base Rate Modification may be made which are specified in sub-paragraphs (1) to (9) of Condition 15(a)(iv) (Base Rate Modification).
An amendment may be made under Condition 15 (Base Rate Modification) to change the SONIA rate on the Notes to an alternative base rate (including a base rate that remains linked to SONIA but calculated in a different manner) under certain circumstances and subject to certain conditions including no objection to the proposal being received by at least 10 per cent.
These events broadly relate to SONIA's disruption or discontinuation, but also include, inter alia, any public statements by the SONIA administrator or its supervisor to that effect, and a Base Rate Modification may also be made if PML as Administrator reasonably expects any of these events to occur within six months of the proposed effective date of such Base Rate Modification.
The Issuer shall use reasonable endeavours to agree modifications to each hedging agreement where commercially appropriate so that the transaction is hedged following the Base Rate Modification to a similar extent as prior to the Base Rate Modification, and that such modifications shall take effect within 30 calendar days following the Base Rate Modification taking effect.
As noted above, these events broadly relate to SONIA's disruption or discontinuation, but also include, inter alia, any public statements by the SONIA administrator or its supervisor to that effect, and a Base Rate Modification may also be made if the Seller (on behalf of the Issuer) reasonably expects any of these events to occur within six months of the proposed effective date of such Base Rate Modification.
Investors should also note the negative consent requirements in relation to a Base Rate Modification (as to which, see "Risks relating to changes to the structure and documents – Meetings of Noteholders, Modification and Waivers" above).
Investors should note the various circumstances under which a Base Rate Modification may be made.
However, the Issuer will pay interest on the Class A Notes issued in connection with its acquisition of such Purchased Receivables based on the Applicable Reference Rate (which is the EURIBOR Reference Rate as long as no Base Rate Modification is made further to the occurrence of a Benchmark Event).