Close-Out Amount Sample Clauses
The Close-out Amount clause defines the method for determining the value of obligations that are terminated early under a contract, typically following a default or other specified event. In practice, this clause allows the non-defaulting party to calculate the net amount owed by considering the market value or replacement cost of the terminated transactions, often using commercially reasonable procedures and relevant market quotations. Its core function is to ensure a fair and efficient settlement process by providing a clear mechanism for valuing and settling outstanding obligations, thereby reducing uncertainty and potential disputes between parties.
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Close-Out Amount. For purposes of determining the Close Out Amount (if any), Party A and Party B hereby agree that it shall be deemed commercially reasonable to exclude any loss or cost incurred in connection with terminating, liquidating or re-establishing any hedge related to a Terminated Transaction or group of Terminated Transactions (or any gain resulting therefrom). Accordingly, the penultimate full paragraph of the defintion of Close Out Amount shall be deleted and the Close Out Amount (if any) shall be determined as otherwise set forth under the remainder of the definition of Close Out Amount.
Close-Out Amount. 21.3.1 Where the Contractual Valuation Methodology contains provisions for calculating a single amount payable by one party to the other as a result of the termination of a Financial Contract, such amount shall be the Close-Out Amount in respect of such Financial Contract.
21.3.2 Where the Contractual Valuation Methodology contains provisions for calculating more than one amount payable by one party to the other as a result of the termination of a Financial Contract (each such amount, a “Close-Out Component”), the aggregate of each Close-Out Component, as determined by the Company, shall be the Close-Out Amount in respect of such Financial Contract.
Close-Out Amount. Where the Contractual Valuation Methodology contains provisions for calculating a single amount payable by one party to the other as a result of the termination of a Financial Contract, such amount shall be the Close-Out Amount in respect of such Financial Contract.
Close-Out Amount. At the end of the definition of Close-out Amount in Section 14, the following sentence is inserted: “A Close-out Amount is not required to be the market value of the Terminated Transaction or group of Terminated Transactions and, subject to Section 6(e)(ii)(3), the Determining Party is not obliged to use the mid-market quotations or mid-market valuations in determining a Close-out Amount.”
Close-Out Amount. The Close-Out Amount is the amount payable by either the Company or the relevant Signatory to the other as a result of termination of a Financial Contract. The Close-Out Amount will be expressed in US dollars. If the Financial Contract provides for some other currency, the amount will be converted to US dollars using the exchange rate as at the close of business on the Administration Date. Close-Out Amounts will be determined in accordance with the applicable Financial Contract Valuation Methodology, in each case incorporating certain Overriding Valuation Provisions.