Common use of Hedging Instruments Clause in Contracts

Hedging Instruments. (a) The Issuer, promptly upon the request of the Market Value Agent, on behalf of the Majority Noteholders, shall enter into such Hedging Instruments as the Market Value Agent, on behalf of the Majority Noteholders, may deem appropriate to hedge the interest rate risk associated with the Notes attributable to Loans bearing a fixed Loan Interest Rate and relative to the expected Securitization Proceeds therefrom; provided that payments thereunder to the Collection Account pursuant to SECTION 5.01(b)(1)(x) constitute qualifying income under Section 856(c)(5)(G) of the Code. The Market Value Agent shall determine, in its sole discretion, whether any Hedging Instrument conforms to the requirements of SECTION 8.01(b) AND (c). (b) Each Hedging Instrument shall expressly provide that in the event of a Securitization, such portion of the Hedging Instrument shall terminate as the Majority Noteholders deem appropriate to facilitate the hedging of the risks specified in SECTION 8.01(a).

Hedging Instruments. (a) The Issuer, promptly upon the request of the Market Value Agent, on behalf of the Majority Noteholders, shall enter into such Hedging Instruments as the Market Value Agent, on behalf of the Majority Noteholders, may deem appropriate to hedge the interest rate risk associated with the Notes attributable to Loans bearing a fixed Loan Interest Rate and relative to the expected Securitization Proceeds therefrom; provided that payments thereunder to the Collection Account pursuant to SECTION 5.01(b)(1)(x) constitute qualifying income under Section SECTION 856(c)(5)(G) of the Code. The Market Value Agent shall determine, in its sole discretion, whether any Hedging Instrument conforms to the requirements of SECTION 8.01(b) AND and (c). (b) Each Hedging Instrument shall expressly provide that in the event of a Securitization, such portion of the Hedging Instrument shall terminate as the Majority Noteholders deem appropriate to facilitate the hedging of the risks specified in SECTION 8.01(a).