Synthetic Security Collateral definition
Synthetic Security Collateral means Eligible Investments, debt securities which would satisfy the definition of Collateral Debt Securities but which have a ▇▇▇▇▇'▇ Rating of at least "A1," a Standard & Poor's Rating of at least "A+" and, if rated by Fitch, a Fitch Rating of at least "A+," or other investments the acquisition of which would satisfy the Rating Condition, in each case which mature no later than the Stated Maturity.
Synthetic Security Collateral means any assets which are Eligible Investments which may be sold at any time without market risk (provided that if any credit protection payments to be paid under the Synthetic Securities can only be paid on the maturity date of such Eligible Investments then such Eligible Investments may bear market risk), comprising collateral required to be delivered by the Issuer as security for its obligations to any Synthetic Security Obligor under any Synthetic Security pursuant to the terms thereof. References to the price payable upon the acquisition of or entry into a Synthetic Security acquired or entered into by the Issuer on an unfunded basis shall be deemed to be the aggregate principal amount of Synthetic Security Collateral required to be delivered by the Issuer to the applicable Synthetic Security Obligor.
Synthetic Security Collateral means, in connection with any Synthetic Security, (i) any floating rate security that is rated “AAA” by Standard & Poor’s or “AAA” by Fitch and “Aaa” by Moody’s and matures no later than the Stated Maturity, the expected average life of which does not exceed the expected average life of the related Reference Obligation by more than one year, and which is a credit card security that entitles the holders thereof to receive payments that depend on the cash flow from balances outstanding under revolving consumer credit card accounts, (ii) any Eligible Investment or any investment of a type described in the definition of “Eligible Investments” but with respect to which the counterparty thereto has a long term rating of not less than “A” by Standard & Poor’s, not less than “A” by Fitch and not less than “Aa3” by Moody’s (and, if rated “Aa3” by Moody’s, such rating is not on watch for possible downgrade by Moody’s) or a short term credit rating of not less than “A-1” by Standard & Poor’s, not less than “F1” by Fitch and “P-1” by Moody’s (and such rating is not on watch for possible downgrade by Moody’s) at the time of such investment, (iii) commercial paper maturing no later than the Business Day prior to the Distribution Date next succeeding the date of investment in such commercial paper having at the time of such investment a credit rating of “P-1” by Moody’s (and such rating is not on watch for possible downgrade by Moody’s), not less than “F1” by Fitch and not less than “A-1” by Standard & Poor’s or (iv) other investments the acquisition of which would satisfy the Rating Condition, in each case which mature no later than the Stated Maturity and on the date such Synthetic Security Collateral is acquired by the Issuer, such person (or the guarantor of such person’s obligations under such Synthetic Security) satisfies the Synthetic Security Counterparty Ratings Requirement.
Examples of Synthetic Security Collateral in a sentence
Any payments in respect of the Synthetic Security Collateral not retained by the Synthetic Security Counterparty are to be paid to the Trustee.
In the event the Trustee acts as collateral agent with respect to Synthetic Security Collateral, the Trustee shall deposit such Synthetic Security Collateral in one or more segregated trust accounts, which shall be held in trust in the name of the Trustee, as collateral agent, for the benefit of the related Synthetic Security counterparty, and shall apply the funds on deposit in such account(s), all in accordance with the terms of the related Synthetic Security.
The Issuer shall grant to the Trustee a second priority security interest in any Synthetic Security Collateral, and shall cause the Synthetic Security Counterparty and the custodian or other third party (including, if applicable, the Trustee as collateral agent) holding the Synthetic Security Collateral to be notified of and acknowledge such second priority security interest.
More Definitions of Synthetic Security Collateral
Synthetic Security Collateral. Any collateral in the form of cash or securities conforming to the definition of Eligible Investments or such other securities in respect of which a Rating Agency Condition has been satisfied in respect of S&P and Moody’s, in each case, as permitted by the terms of the applicable Synthetic Security required to be delivered by the Issuer as security for its obligations to any Synthetic Security Counterparty under any Synthetic Security pursuant to the terms thereof.
Synthetic Security Collateral means any collateral (which shall be in the form of cash or securities which satisfies the requirement of the definition of Eligible Investments and deposited in the Synthetic Security Collateral Account) required to be delivered by the Issuer as security for its obligations to any Synthetic Security Obligor under any Synthetic Security pursuant to the terms thereof, provided that Synthetic Security Collateral may not consist of any securities that are Dutch Ineligible Securities. References to the price payable upon the acquisition of or entry into a Synthetic Security acquired or entered into by the Issuer on an unfunded basis shall be deemed to be the aggregate principal amount of Synthetic Security Collateral required to be delivered by the Issuer to the applicable Synthetic Security Obligor.