CFTC & SEC Representations Clause Samples
The CFTC & SEC Representations clause requires parties to confirm that they are in compliance with relevant regulations set by the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). This typically involves each party affirming that they are properly registered, exempt, or otherwise authorized to engage in transactions governed by these agencies, such as swaps or securities-based swaps. By including this clause, the agreement ensures that all parties are legally permitted to participate in the transaction, thereby reducing regulatory risk and promoting legal certainty.
CFTC & SEC Representations. For the purpose of Section 3 of this Agreement, Party B will make the following representations to Party A (which representations will be deemed to be repeated by Party B on each date on which (i) a Transaction is entered into and (ii) there is a change to the terms of an existing Transaction (including termination, assignment, novation, exchange, transfer, amendment, conveyance, or extinguishing of rights or obligations of a Transaction).