Defeasance Portfolio Sample Clauses
A Defeasance Portfolio clause defines the set of financial assets or securities that are set aside to secure the obligations of a borrower, typically in the context of a loan or bond defeasance. In practice, this portfolio usually consists of government securities or other low-risk investments whose cash flows are structured to match the scheduled payments of the underlying debt. By establishing a Defeasance Portfolio, the borrower can effectively remove the liability from its balance sheet, as the portfolio ensures that all future payment obligations will be met, thereby mitigating credit risk for the lender and providing financial flexibility for the borrower.
Defeasance Portfolio. (a) If the Warranty Provider exercises the remedy provided by Section 4.1(c)(i) upon a Permanent Defeasance Event, the Warranty Provider shall have the right to cause the Adviser to immediately allocate all of the assets of the Fund to the Fixed-Income Portfolio (the "Defeasance Portfolio"). In addition to or in lieu of the remedy provided in the immediately preceding sentence, at any time after the occurrence of a Permanent Defeasance Event, the Warranty Provider may, at its election in its sole discretion, cause the Custodian to invest all of the assets of the Fund in U.S. Zeroes (other than in connection with sales of portfolio investments for Cash and/or Cash Equivalents after receipt by the Fund of redemption requests in order to meet such requests or in connection with the payment of Fund fees). The Financial Warranty Fee shall remain due and payable in accordance with Section 2.4 notwithstanding the occurrence of a Permanent Defeasance Event. The Adviser shall provide the Warranty Provider upon the issuance of the Financial Warranty with an irrevocable instruction, in the form of Annex A to the Service Agreement, executed by the Adviser which shall constitute the Warranty Provider's direction to the Custodian pursuant to this Section 4.2(a) and the Service Agreement. The irrevocable instruction shall also constitute a limitation of the further authority of the Adviser (including any subadviser of the Fund) to manage the Fund's assets other than in accordance with the irrevocable instruction. If the Warranty Provider elects to provide instructions to the Custodian pursuant to this Section 4.2(a) following a Permanent Defeasance Event, the Warranty Provider shall do so by delivering the irrevocable instruction to the Custodian. The Warranty Provider shall only deliver such instruction to the Custodian following a Permanent Defeasance Event and after notice thereof to the Adviser.
(b) If a Permanent Defeasance Event shall have occurred, the Adviser shall immediately cause maximum Fund Fees and Expenses (excluding Extraordinary Expenses) to be reduced to 1.05% per annum of the average daily Net Assets of the Fund for the Class A Shares, 2.05% per annum of the average daily Net Assets of the Fund for the Class B Shares, 2.05% per annum of the average daily Net Assets of the Fund for the Class C Shares and 1.30% per annum of the average daily Net Assets of the Fund for the Class D Shares.
Defeasance Portfolio. If the Insurer exercises remedies provided by Section 4.01(c) or Section 4.01(d), the Insurer shall instruct the Custodian to invest the assets of the Fund in a Defeasance Portfolio. "Defeasance Portfolio" means an earmarked portfolio of investments consisting of (i) zero coupon U.S. Treasury bonds having a par amount equal to the Guarantee Amount and that mature on a date as close to the Guarantee Maturity Date as practicable but in any event no later than the Guarantee Maturity Date, and, following the maturity of such zero coupon U.S. Treasury bonds, Cash, (ii) a portfolio of zero coupon U.S. Treasury bonds that mature on various dates which correspond as closely as reasonably practicable to the expected payment dates of the expected fees and expenses of the Fund, and (iii) Cash. To the extent the Fund Value exceeds 101% of the Bond Floor, the Insurer shall direct the Custodian to take instruction from the Adviser with respect to the investment of any such excess subject to the condition that such excess may only be invested in Permitted Fixed Income Securities, Permitted Equity Securities, Permitted Equity Options that are Purchased Calls, and/or Cash, it being understood that the investing of such excess shall in no event create any liability which could affect the Defeasance Portfolio.
Defeasance Portfolio. (a) The Warranty Provider may exercise the remedies provided in Section 4.1(c) at any time after the occurrence of a Trigger Event or Market Initiated Defeasance Event. If the Warranty Provider exercises the remedy provided by Section 4.1(c)(i)(A), the Warranty Provider shall have the right to instruct the Adviser to immediately allocate all of the assets of the Fund to the Defeasance Portfolio in accordance with subsection (i) of the definition of Defeasance Portfolio under Section 1.1. If the Warranty Provider exercises the remedy provided by Section 4.1(c)(i)(B), the Warranty Provider shall have the right to deliver to the Custodian the Irrevocable Instructions instructing the Custodian to invest all of the assets of the Fund in a Defeasance Portfolio in accordance with subsection (ii) of the definition of Defeasance Portfolio under Section 1.1 and such Irrevocable Instructions. For the avoidance of doubt, the parties hereby agree that (i) the Warranty Provider may at its election, in its sole discretion, exercise the remedy provided in Section 4.1(c)(i)(B) after it has exercised the remedy provided in Section 4.1(c)(i)(A) and (ii) if the Warranty Provider exercises its rights to adjust the Multiple under Section 4.1(c)(ii), the Warranty Provider shall not be precluded subsequent thereto from exercising its rights under Sections 4.1(c)(i)(A) and/or 4.1
Defeasance Portfolio. If the Insurer exercises remedies provided by Section 4.01(c) or Section 4.01(d), the Insurer shall instruct the Custodian to invest the assets of the Fund in a Defeasance Portfolio. "Defeasance Portfolio" means an earmarked portfolio of investments consisting of (i) zero coupon U.S. Treasury bonds having a par amount equal to the Guarantee Amount and that mature on a date as close to the Guarantee Maturity Date as practicable but in any event no later than the Guarantee Maturity Date, and, following the maturity of such zero coupon U.S. Treasury bonds, Cash, (ii) a portfolio of zero coupon U.S. Treasury bonds that mature on various dates which correspond as closely as reasonably practicable to the expected payment dates of the expected fees and expenses of the Fund, and (iii) Cash.
Defeasance Portfolio. (a) The Warranty Provider may exercise the remedies provided in Section -------- 4.1
Defeasance Portfolio. If the Insurer exercises remedies provided by SECTION 4.01(C) or SECTION 4.01(D), the Insurer shall be entitled to deliver the Direction and Undertaking Regarding Remedies and to direct the Custodian with respect to the liquidation of the Fund's assets and the acquisition of Defeasance Portfolio. "DEFEASANCE PORTFOLIO" means an earmarked portfolio of investments consisting of (i) zero coupon U.S. Treasury bonds having a par amount equal to the Guarantee Amount and that mature on a date as close to the Maturity Date as practicable but in any event no later than the Maturity Date, and, following the maturity of such zero coupon U.S. Treasury bonds, Cash, (ii) a portfolio of zero coupon U.S. Treasury bonds that mature on various dates which correspond as closely as reasonably practicable to the expected payment dates of the expected fees and expenses of the Fund, and (iii) Cash. To the extent practicable, the Adviser shall manage the Defeasance Portfolio to obtain the highest available yields consistent with the requirements set forth in the definition of "Defeasance Portfolio", and such constraints as may exist due to the value of the Fund's assets at the time the Fund's assets are invested in the Defeasance Portfolio. For example, if Fund Value is less than 100% of the Bond Floor the Adviser shall invest the Defeasance Portfolio, to the extent possible, in the following order of priority: (i) the instruments in SECTION 4.02(I), (ii) the instruments in SECTION 4.02(II), and (iii) Cash. It is understood that, if Fund Value is less than 100% of the Bond Floor, the extent of the Fund's assets may limit the Fund's ability to purchase zero coupon U.S. Treasury bonds having a par amount equal to the Guarantee Amount.
Defeasance Portfolio. A. In accordance with these Irrevocable Instructions, you shall invest the assets of the Fund in an earmarked portfolio (the "Defeasance Portfolio") of investments consisting of (i) subject to subsections (ii) and (iii) below, (A) (1) in the absence of a Floor Shortfall, U.S. Zeroes having an aggregate par amount equal to the Aggregate Protected Amount (as determined by the Calculation Agent and communicated to you with these Irrevocable Instructions), or (2) in the event of a Floor Shortfall (as determined by the Calculation Agent and communicated to you with these Irrevocable Instructions), U.S. Zeroes having an aggregate par amount equal to the Aggregate Protected Amount less the Floor Shortfall, in each case that mature on a date as close to [___________, 2010] (the "Maturity Date") as practicable but in any event no earlier than three-months prior to, and no later than, the Maturity Date and (B) following the maturity of such U.S. Zeroes, Cash; (ii) a portfolio of U.S. Zeroes that mature on various dates which correspond as closely as practicable to the expected payment dates of the expected Fund Fees and Expenses, exclusive of any Extraordinary Expenses; and (iii) Cash and/or Cash Equivalents to the extent necessary for the Fund to meet redemption requests reasonably anticipated to be received by the Fund within a rolling five Exchange Business Day period. In the event there are additional assets of the Fund that are not necessary to meet the requirements of (i)(A)(1), (ii) and (iii) above, such additional assets shall be invested in U.S. Zeroes that mature on a date as close to the Maturity Date as practicable but in any event no earlier than three-months prior to, and no later than, the Maturity Date.
B. To the extent practicable, in investing in the Defeasance Portfolio the Fund seeks to obtain the highest available yields consistent with the requirements set forth above and such constraints as may exist due to the value of the Fund's assets at the time the Fund's assets are invested in the Defeasance Portfolio.
C. In executing any transaction to purchase or sell securities in accordance with the terms of these Instructions, the Custodian shall utilize the broker or dealer specified by the Adviser in a Permitted Instruction (as defined in the Service Agreement) in accordance with the terms of the Service Agreement.