Hedge Guarantee Clause Samples

Hedge Guarantee. Each Borrower irrevocably and unconditionally and jointly and severally: (a) guarantees to the Swap Banks punctual performance by the other Borrower (the "Other Borrower") of all that Other Borrower's obligations under each Master Agreement to which it is a party; (b) undertakes with the Swap Banks that whenever the Other Borrower does not pay any amount when due under or in connection with any Master Agreement to which it is a party, that Borrower shall immediately on demand pay that amount as if it were the principal obligor; and (c) agrees with the Swap Banks that if any obligation guaranteed by it is or becomes unenforceable, invalid or illegal, it will, as an independent and primary obligation, indemnify the Swap Banks immediately on demand against any cost, loss or liability it incurs as a result of the Other Borrower not paying any amount which would, but for such unenforceability, invalidity or illegality, have been payable by it under any Master Agreement on the date when it would have been due. The amount payable by a Borrower under this indemnity will not exceed the amount it would have had to pay under this clause if the amount claimed had been recoverable on the basis of a guarantee.