Early Termination Close Out Netting Sample Clauses
The Early Termination; Close-Out Netting clause allows parties to end their contractual relationship before the originally agreed-upon termination date, typically in response to specific trigger events such as default or insolvency. When early termination is invoked, all outstanding obligations between the parties are accelerated and combined into a single net payment, calculated by offsetting the value of all open transactions. This mechanism is crucial for minimizing credit risk and ensuring that neither party is left with unbalanced exposures if the agreement is terminated unexpectedly.
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Early Termination Close Out Netting. (a) Right to Terminate Following Event of Default. If at any time an Event of Default with respect to a party more than 20 days notice to the Defaulting Party specifying the relevant Event of Default, designate a day not earlier than the day such notice is effective as an Early Termination Date in respect of all outstanding Transactions. If, Termination Date in respect of all outstanding Transactions will occur immediately upon the occurrence with respect to such party of an Event of Default specified in Section 5(a)(vii)(1), (3), (5), (6) or, to the extent analogous thereto, (8), and as of the time immediately preceding the institution of the relevant proceeding or the presentation of the relevant petition upon the occurrence with respect to such party of an Event of Default specified in Section 5(a)(vii)(4) or, to the extent analogous thereto, (8).
Early Termination Close Out Netting. (a) Right to Terminate Following Event of Default. If at any time an Event of Default with respect to a party (the “Defaulting Party”) has occurred and is then continuing, the other party (the “Non-defaulting Party”) may, by not more than 20 days notice to the Defaulting Party specifying the relevant Event of Default, designate a day not earlier than the day such notice is effective as an Early Termination Date in respect of all outstanding Transactions. If, however, “Automatic Early Termination” is specified in the Schedule as applying to a party, then an Early Termination Date in respect of all outstanding Transactions will occur immediately upon the occurrence with respect to such party of an Event of Default specified in Section 5(a)(vii)(1), (3), (5), (6) or, to the extent analogous thereto, (8), and as of the time immediately preceding the institution of the relevant proceeding or the presentation of the relevant petition upon the occurrence with respect to such party of an Event of Default specified in Section 5(a)(vii)(4) or, to the extent analogous thereto, (8).
Early Termination Close Out Netting