Excess Collateral Amount Clause Samples
The Excess Collateral Amount clause defines the threshold at which the collateral posted by a party exceeds the required amount under an agreement. In practice, this clause specifies how to calculate the surplus collateral, often by comparing the value of posted collateral to the current exposure or required margin, and may outline procedures for returning or reallocating the excess. Its core function is to ensure that parties do not unnecessarily tie up assets beyond what is contractually required, thereby promoting efficient use of collateral and reducing operational risk.
Excess Collateral Amount. The amount of the Excess Collateral Amount as of the close of business on the related Distribution Date after giving effect to withdrawals, deposits and payments to be made in respect of the preceding month
Excess Collateral Amount. Prior to the Maturity Date and as long as no Event of Default has occurred and is continuing, upon receipt of written notice from the Borrower evidencing the occurrence of an Excess Collateral Amount Event, the Bank shall on the first Excess Collateral Amount Redemption Date immediately following it receipt of such notice, remit and/or deliver to the Borrower (i) Cash Collateral in an amount equal to the Excess Collateral Amount then existing and (ii) if the amount of Cash Collateral is less than the then existing Excess Collateral Amount, Pledged Acceptable Securities (having a combined Market Value) in an amount equal to the differenced resulting from subtracting (x) the amount of Cash Collateral distributed to the Borrower pursuant to (i) of this section from (y) the Excess Collateral Amount existing prior to the distribution of Cash Collateral.
Excess Collateral Amount i. Beginning of Interest Period
ii. Increase in Excess Collateral Amount in connection with the Supplemental Indenture
iii. Reduction in Excess Collateral Amount
iv. As of Payment Date