Derivative Agreement Clause Samples
A Derivative Agreement clause defines the terms under which parties enter into financial contracts whose value is derived from underlying assets, rates, or indices. This clause typically outlines the types of derivatives covered, such as swaps, options, or futures, and specifies the obligations, settlement procedures, and risk management requirements for each party. Its core practical function is to establish a clear framework for trading and managing derivative instruments, thereby allocating risk and ensuring both parties understand their rights and responsibilities.
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Derivative Agreement. (a) The Issuer shall enter into the Derivative Agreement, certain terms of which are set forth herein for the convenience of the parties thereto for incorporation therein by reference, with the Derivative Counterparty on the Issuance Date. Pursuant to the terms of the Derivative Agreement, the Derivative Counterparty shall pay to the Issuer on each Transfer Date the Net Derivative Receipt, if any, plus the amount of any Net Derivative Receipt due but not paid with respect to any previous Transfer Date. The Issuer shall deposit such Net Derivative Receipts, if any, into the Collection Account and shall apply such amounts as MBNAseries Available Funds pursuant to Section 3.04(a)(iii) of the Indenture Supplement. In addition, in accordance with the terms of the Derivative Agreement, the Issuer shall pay to the Derivative Counterparty the Net Derivative Payment, if any, for such Transfer Date, plus the amount of any Net Derivative Payment due but not paid on any previous Transfer Date, from amounts on deposit in the Interest Funding sub-Account for the Class A(2002-1) Notes. If the Derivative Agreement has not been terminated and the Issuer has not received any Net Derivative Receipt due with respect to the related Transfer Date prior to 12:00 p.m. on the date such payment is due, (i) the Issuer shall notify the Derivative Counterparty, the Beneficiary and the Servicer of such fact prior to 1:00 p.m. on such date, (ii) the Issuer, if directed by the Servicer, shall designate an Early Termination Date (as such term is defined in the Derivative Agreement) pursuant to the Derivative Agreement and shall, if the Beneficiary so directs, terminate the Derivative Agreement pursuant to its terms, and (iii) the Issuer shall provide the Trustee, prior to 4:30 p.m. on the related Transfer Date, with new statements substantially in the forms of Exhibit B and Exhibit C to the Indenture Supplement revised, if necessary, to reflect that the Net Derivative Receipt (or any portion thereof) was not received by the Issuer for such Transfer Date.
(b) The Issuer shall direct the Derivative Counterparty to assign its rights and obligations under the Derivative Agreement to a replacement Derivative Counterparty, in the event that (i) the senior unsecured long-term issuer credit rating (or the then equivalent rating) of the Derivative Counterparty or a replacement Derivative Counterparty, if any, is reduced below BBB- by Standard & Poor's, (ii) the senior unsecured debt rating (or the...
Derivative Agreement. The Swap Agreement and the Cap Agreement. Derivative Counterparty: Collectively, the Cap Counterparty and the Swap Counterparty.
Derivative Agreement. Any forward contract, futures contract, swap, option or other similar agreement or arrangement (including, without limitation, caps, floors, collars and similar agreements).
Derivative Agreement. 9 Section 2.09.
Derivative Agreement. Any forward contract, futures contract, swap, option or other similar agreement or arrangement (including, without limitation, caps, floors, collars and similar agreements), the value of which is dependent upon interest rates, currency exchange rates, commodities or other indices (including foreign exchange lines).
Derivative Agreement. The Class A-1 Swap Agreement, the Floor Agreement and the Certificate Swap Agreement, as applicable.
Derivative Agreement. Operating Agreement #3, Flow and Load Measurement and Management, addresses matters set forth in this Section. It may be replaced or supplemented by successor or other Derivative Agreements.
Derivative Agreement. Derivative Agreements shall address additional matters set forth in this Section 3. They may be replaced or supplemented by successor or other Derivative Agreements.
Derivative Agreement. Operating Agreement #1, Blue Plains Flow Capacity, Loads and Peak Flows – Allocations and Limitations, addresses additional matters set forth in this Section. It may be replaced or supplemented by successor or other Derivative Agreements.
Derivative Agreement. Operating Agreement #4, Wastewater Projected Flow Capacity Needs and Future Options, addresses matters set forth in this Section. It may be replaced or supplemented by successor or other Derivative Agreements.