Forward Rate Agreements Sample Clauses

Forward Rate Agreements. Definition 2.1 (FRA). A forward rate agreement, briefly FRA, depending on the notional value N , the fixed rate K, the expiry time T , and the maturity time S > T , is a contract, where its holder receives Nτ (T, S)K and pays Nτ (T, S)L(T, S) units of currency at the same time S. Remark 2.2 (FRA). An FRA gives its holder an interest-rate payment for the period between T and S > T . The contract allows to “lock in” the interest rate between T and S at the desired value K. At maturity S, a fixed payment based on a fixed rate K is exchanged against a floating payment based on the spot rate L(T, S), resetting in T and with maturity S. The value of an FRA at time S is P (T, S) Nτ (T, S) (K − L(T, S)) = N .τ (T, S)K − 1 + 1Σ . The value of an FRA at time t ≤ T is FRA(t, T, S, N, K) = N (τ (T, S)P (t, S)K − P (t, T )+ P (t, S)) = Nτ (T, S)P (t, S) (K − F (t; T, S)) . Hence F (t; T, S) is that value of K that makes the FRA a fair contract at time t. We also see that in order to value an FRA, we can just replace L(T, S) by F (t; T, S) in the payoff at S and then take the present value at t.
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Forward Rate Agreements. Forward rate agreements (FRAs) are over the counter (OTC) instruments. In a FRA transaction, one of the counterparties (A) agrees to pay the other counter- party (B) LIBOR settling t years from now applied to a certain notional amount (say, $100mm. In exchange, counterparty B pays counterparty A a pre-agreed in- terest rate (say, 3.05%) applied to the same notional. The contract matures on an anniversary T (say, 3 months) of the settlement date, and interest is computed on an act/360 day count basis. Anniversary dates generally follow the same modified following business day convention as the LIBOR. FRAs are quoted in terms of the annualized forward interest rate applied to the accrual period of the transaction.
Forward Rate Agreements. Any forward rate agreement into which the parties have entered and in respect of which the confirmation or other confirming evidence refers to or incorporates the British Bankers Association London Interbank Forward Rate Agreements Recommended Terms and Conditions (1985 edition) (“FRABBA Terms”) will be governed by this Agreement. Any forward rate agreement into which the parties may enter and in respect of which the confirmation or other confirming evidence refers to or incorporates the FRABBA Terms will be governed by this Agreement in all circumstances except when the parties expressly agree that this provision will not apply. Each such transaction will be deemed to be a Transaction and each such confirmation or other confirming evidence will be deemed to constitute a Confirmation for purposes of this Agreement. Sections B, C and E and clauses 1, 4, 5 and 6 of Section D of the FRABBA Terms are hereby incorporated by reference in this Agreement. Those Sections are applicable only to transactions to which this provision relates and will prevail in the event of any inconsistency with any other provision of this Agreement. In the event of any other inconsistency between the FRABBA Terms and this Agreement, this Agreement will govern. Clauses 2, 3, 7, 8, 9 and 10 of Section D of the FRABBA Terms are not applicable to any transaction to which this provision relates. LANDESBANK SCHLESWIG-HOLSTEIN GIROZENTRALE MIF LIMITED By: /s/ XXXXX XXXXXXX By: /s/ XXXXXXX X. XXXXXX Name: Xxxxx Xxxxxxx Name: Xxxxxxx X. Xxxxxx Title: Title: President Date: 1. Okt. 2001 Date: Nov, 30, 2001

Related to Forward Rate Agreements

  • Interest Rate Agreements 13 Investment..................................................................13

  • Interest Rate Protection Agreements (a) Within ninety days after the Closing Date, the Borrower shall enter into and thereafter maintain interest rate protection agreements (protecting against fluctuations in interest rates) having a term of at least three years from the Closing Date, establishing a fixed or maximum interest rate of 10.5% per annum for an aggregate notional amount equal to at least 50% of the aggregate principal amount of all Term Loans then outstanding.

  • Separate Agreements All uses of an E-System shall be governed by and subject to, in addition to Section 9.2 and this Section 9.3, the separate terms, conditions and privacy policy posted or referenced in such E-System (or such terms, conditions and privacy policy as may be updated from time to time, including on such E-System) and related Contractual Obligations executed by Agent and Credit Parties in connection with the use of such E-System.

  • Hedging Agreements The Borrower will not, and will not permit any of its Subsidiaries to, enter into any Hedging Agreement, other than Hedging Agreements entered into in the ordinary course of business to hedge or mitigate risks to which the Borrower or any Subsidiary is exposed in the conduct of its business or the management of its liabilities.

  • Interest Rate Hedging In order to take advantage of the current favorable interest-rate climate, the Commission agrees that the actual reasonable cost of PG&E’s interest rate hedging activities with respect to the financing necessary for the Settlement Plan shall be reflected and recoverable in PG&E’s retail gas and electric rates without further review.

  • Swap Agreements The Borrower will not, and will not permit any of its Subsidiaries to, enter into any Swap Agreement, except (a) Swap Agreements entered into to hedge or mitigate risks to which the Borrower or any Subsidiary has actual exposure (other than those in respect of Equity Interests of the Borrower or any of its Subsidiaries), and (b) Swap Agreements entered into in order to effectively cap, collar or exchange interest rates (from fixed to floating rates, from one floating rate to another floating rate or otherwise) with respect to any interest-bearing liability or investment of the Borrower or any Subsidiary.

  • Hedge Agreements On each date that any Hedge Agreement is executed by any Hedge Provider, Borrower and each other Loan Party satisfy all eligibility, suitability and other requirements under the Commodity Exchange Act (7 U.S.C. § 1, et seq., as in effect from time to time) and the Commodity Futures Trading Commission regulations.

  • Securities Contract; Swap Agreement The parties hereto intend for (i) the Transaction to be a “securities contract” and a “swap agreement” as defined in the Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy Code”), and the parties hereto to be entitled to the protections afforded by, among other Sections, Sections 362(b)(6), 362(b)(17), 546(e), 546(g), 555 and 560 of the Bankruptcy Code, (ii) a party’s right to liquidate the Transaction and to exercise any other remedies upon the occurrence of any Event of Default under the Agreement with respect to the other party to constitute a “contractual right” as described in the Bankruptcy Code, and (iii) each payment and delivery of cash, securities or other property hereunder to constitute a “margin payment” or “settlement payment” and a “transfer” as defined in the Bankruptcy Code.

  • Interest Rate Protection Agreement As of the date hereof, Borrower has entered into, made all payments required under, and satisfied all conditions precedent to the effectiveness of, an interest rate protection agreement that satisfies all of the following conditions (such interest rate protection agreement together with (i) any extension thereof or (ii) any other interest rate protection agreement entered into pursuant to Section 2.8, being referred to herein as the “Interest Rate Protection Agreement”):

  • Banking Services and Swap Agreements Each Lender or Affiliate thereof providing Banking Services for, or having Swap Agreements with, any Loan Party or any Subsidiary or Affiliate of a Loan Party shall deliver to the Administrative Agent, promptly after entering into such Banking Services or Swap Agreements, written notice setting forth the aggregate amount of all Banking Services Obligations and Swap Agreement Obligations of such Loan Party or Subsidiary or Affiliate thereof to such Lender or Affiliate (whether matured or unmatured, absolute or contingent). In furtherance of that requirement, each such Lender or Affiliate thereof shall furnish the Administrative Agent, from time to time after a significant change therein or upon a request therefor, a summary of the amounts due or to become due in respect of such Banking Services Obligations and Swap Agreement Obligations. The most recent information provided to the Administrative Agent shall be used in determining which tier of the waterfall, contained in Section 2.18(b), such Banking Services Obligations and/or Swap Agreement Obligations will be placed.

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