Catastrophe Bond means (a) any note, bond or other Debt instrument or any swap or other similar agreement which has a catastrophe, weather or other risk feature linked to payments thereunder and (b) any equity interest in a Person that is not a Subsidiary controlled, directly or indirectly, by the Borrower for the sole purpose of investing in Debt of the type described in clause (a), which, in the case of Catastrophe Bonds purchased by the Borrower or any of its Subsidiaries, are purchased in accordance with its customary reinsurance underwriting procedures. “Change in Control” shall be deemed to have occurred if (a) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all, or substantially all, of the assets of the Borrower occurs; (b) any “person” as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934 (the “Exchange Act”), is or becomes, directly or indirectly, the “beneficial owner,” as defined in Rule 13d-3 under the Exchange Act, of securities of the Borrower that represent 51% or more of the combined voting power of the Borrower’s then outstanding securities; or (c) during any period of two consecutive years, individuals who at the beginning of such period constituted the Board of Directors of the Borrower (together with any new directors whose nomination by or appointment to the Board of Directors or whose nomination by the stockholders of the Borrower was approved by a vote of the directors of the Borrower then still in office who are either directors at the beginning of such period or whose election or nomination for election was previously approved by the Board of Directors) cease for any reason to constitute a majority of the Borrower’s Board of Directors then in office.

Examples of Catastrophe Bond in a sentence

Securis Catastrophe Bond FundAdditional Funds (in respect of which a Supplement or Supplements will be issued) may be established by the Directors from time to time with the prior approval of the Central Bank.Shares may be issued in Classes within each Fund.
Following implementation of several blockchain projects including the Community Inclusion Currencies program co-developed with Grassroots Economics and the launch of the Volcano Catastrophe Bond they also identified the need and importance of developing a collaborative, cross agency approach to a humanitarian DLT.
Catastrophe Bond (CAT) A catastrophe bond (CAT) is a high-yield debt instrument that is designed to raise money for companies in the insurance industry in the event of a natural disaster.
Catastrophe Bond Market Hits $19 billion Outstanding for First Time.
The default would effectively take place if the disaster occurred, as the bondholder would lose his principal which would be used to pay the ‘insured’ party for the disaster loss.Operation of a Catastrophe Bond.

More Definitions of Catastrophe Bond

Catastrophe Bond means (a) any note, bond or other Parent Debt instrument or any swap or other similar agreement which has a catastrophe, weather or other risk feature linked to payments thereunder and (b) any equity interest in a Person that is not a Subsidiary of the Parent controlled, directly or indirectly, by the Parent for the sole purpose of investing in Parent Debt of the type described in clause (a), which, in the case of Catastrophe Bonds purchased by the Parent or any of its Subsidiaries, are purchased in accordance with its customary reinsurance underwriting procedures.

Catastrophe Bond means (a) any note, bond or other Debt instrument or any swap or other similar agreement which has a

Catastrophe Bond means any note, bond or other instrument of Indebtedness or any Swap Contract or other similar agreement which has a catastrophe, weather or other risk feature linked to payments thereunder. A “Change in Control” shall be deemed to have occurred if (a) any “person” or “group” (within the meaning of Rule 13d-5 of the Securities Exchange Act of 1934 as in effect on the date hereof), other than Federal Reserve Bank of New York and United States Department of the Treasury (the “Permitted Investors”), shall own, directly or indirectly, beneficially or of record, shares representing more than 35% of the aggregate ordinary voting power represented by the issued and outstanding capital stock of AIG; (b) a majority of the seats (other than vacant seats) on the board of directors of AIG shall at any time be occupied by persons who were not (i) nominated by the board of directors of AIG, (ii) appointed by directors so nominated or (iii) elected with the favorable vote of the Permitted Investors; or (c) any change in control (or similar event, however denominated) with respect to AIG shall occur under and as defined in any indenture or agreement in respect of Material AIG Indebtedness, which event enables or permits the holder or holders of such Material AIG Indebtedness or any trustee or agent on its or their behalf to cause such Material AIG Indebtedness to become due, or to require the prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled maturity.

Catastrophe Bond means Structured Finance Securities that entitle the holders thereof to receive a fixed principal or similar amount and a specified return on such amount, contingent upon amounts being available for such payments following payments by the related issuer to a counterparty that are predicated on the occurrence of specified natural events, generally having the following characteristics: (1) the issuer of such Structured Finance Security has entered into a swap, insurance contract or similar arrangement with a counterparty pursuant to which such issuer agrees to pay amounts to the counterparty upon the occurrence of certain specified events, including but not limited to: hurricanes, earthquakes and other events; and (2) payments on such Structured Finance Security depend primarily upon the occurrence and/or severity of such events.

Catastrophe Bond definition

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