Collateralization Event Sample Clauses
A Collateralization Event clause defines the circumstances under which a party must provide collateral to secure its obligations under an agreement. Typically, this clause outlines specific triggers—such as a downgrade in credit rating, a significant change in financial condition, or a failure to meet certain financial covenants—that require one party to post additional assets or funds as security. By establishing clear conditions for when collateral must be provided, the clause helps protect the non-defaulting party from increased credit risk and ensures that there are adequate resources available to cover potential losses.
Collateralization Event. It shall be a collateralization event (“Collateralization Event”) if (A) either (i) the unsecured, short-term debt obligations of the Relevant Entity are rated below “A-1” by S&P or (ii) if the Relevant Entity does not have a short-term rating from S&P, the unsecured, long-term senior debt obligations of a Relevant Entity are rated below “A+” by S&P, or (B) the unsecured, long-term senior debt obligations or financial strength ratings of the Relevant Entity are rated below “A” by Fitch, Inc. (“Fitch”). For the avoidance of doubt, the parties hereby acknowledge and agree that notwithstanding the occurrence of a Collateralization Event, this Agreement and each Transaction hereunder shall continue to be a Swap Agreement for purposes of the Trust Agreement. Within 30 calendar days from the date a Collateralization Event has occurred and so long as such Collateralization Event is continuing, Party A shall, at its sole expense, either (i) post collateral in an amount required to be posted pursuant to terms of the Credit Support Document (such amount which is the greater of amounts required to be posted by ▇▇▇▇▇’▇, S&P and Fitch), (ii) upon satisfaction of the Rating Agency Condition, furnish an Eligible Guarantee of Party A’s obligations under this Agreement from a guarantor that satisfies the Hedge Counterparty Ratings Requirement or (iii) obtain an Eligible Replacement that (x) upon satisfaction of the Rating Agency Condition (as defined below), assumes the obligations of Party A under this Agreement (through an assignment and assumption agreement in form and substance reasonably satisfactory to Party B) or (y) having provided prior written notice to S&P and Fitch, replaces the outstanding Transactions hereunder with transactions on identical terms, except that Party A shall be replaced as counterparty; provided that such Eligible Replacement, as of the date of such assumption or replacement, will not, as a result thereof, be required to withhold or deduct on account of tax under the Agreement or the new Transactions, as applicable, and such assumption or replacement will not lead to a Termination Event or Event of Default occurring under the Agreement or new Transactions, as applicable.
Collateralization Event. If a Collateralization Event occurs with respect to BNY (or any applicable credit support provider), then BNY shall, at its own expense, within thirty (30) days of such Collateralization Ratings Event:
(1) post collateral under agreements and other instruments approved by the Counterparty, such approval not to be unreasonably withheld, which will be sufficient to restore the immediately prior ratings of the Certificates,
(2) assign the Transaction to a third party, the ratings of the debt of which (or of the guarantor of which) meet or exceed the Qualifying Ratings, on terms substantially similar to this Confirmation, which party is approved by the Counterparty, such approval not to be unreasonably withheld,
(3) obtain a guaranty of, or a contingent agreement of, another person, the ratings of the debt of which (or of the guarantor of which) meet or exceed the Qualifying Ratings, to honor BNY's obligations under this Agreement, provided that such other person is approved by the Counterparty, such approval not to be unreasonably withheld, or
(4) establish any other arrangement approved by the Counterparty, such approval not to be unreasonably withheld, which will be sufficient to restore the immediately prior ratings of their Certificates.
Collateralization Event. If a Collateralization Event occurs with respect to BNY (or any applicable credit support provider), then BNY shall, at its own expense, within thirty (30) days of such Collateralization Ratings Event:
Collateralization Event. If a Collateralization Event occurs with respect to ABN AMRO (or any applicable credit support provider), then ABN AMRO shall, at its own expense, within thirty (30) days of such Collateralization Event:
Collateralization Event. Party A fails to comply with or perform any obligation to be complied with or performed by Party A in accordance with the Credit Support Annex. With respect to the foregoing Additional Termination Event, Party A shall be the sole Affected Party and all Transactions shall be Affected Transactions.
Collateralization Event. The occurrence at any time with respect to Party A of the following event constitutes a collateralization event (a "Collateralization Event"): At any time the senior unsecured long term indebtedness of Party A is rated (1) lower than BBB+ by Standard and Poor's ("S&P") or (2) lower than Baa1 by Mood▇'▇ ▇▇▇estors Service, Inc. ("Moody's"). If a Collateralization Event shall have occurred, Party A shall execute and deliver to Party B a security agreement, in a form to be mutually agreed upon in good faith
Collateralization Event. If a Collateralization Event occurs with respect to WB (or any applicable credit support provider), then WB shall, at its own cost and expense, within thirty (30) days of such Collateralization Ratings Event:
Collateralization Event. The occurrence at any time with respect to Party A of the following event constitutes a collateralization event (a "Collateralization Event"): At any time the senior unsecured long term indebtedness of Party A is rated (1) lower than BBB+ by Standard and Poor's ("S&P") or (2) lower than Baa1 by Mood▇'▇ ▇▇▇estors Service, Inc. ("Moody's"). If a Collateralization Event shall have occurred, Party A shall execute and deliver to Party B a security agreement, in a form to be mutually agreed upon in good faith