{"component": "clause", "props": {"groups": [{"snippet_links": [{"key": "the-issuer", "type": "clause", "offset": [0, 10]}, {"key": "note-purchaser", "type": "definition", "offset": [108, 122]}, {"key": "for-purposes-of-this", "type": "clause", "offset": [140, 160]}, {"key": "of-the-seller", "type": "clause", "offset": [209, 222]}, {"key": "the-class-a-notes", "type": "clause", "offset": [329, 346]}], "snippet": "The Issuer shall implement and maintain a hedging strategy that is reasonably acceptable to the Controlling Note Purchaser; provided, that, for purposes of this subparagraph (h), a hedging strategy consisting of the Seller sponsoring one or more securitizations of pools of Receivables at least every 120 days during the term of the Class A Notes shall be deemed acceptable to the Controlling Note Purchaser.", "samples": [{"hash": "5bkG1ss4tlr", "uri": "/contracts/5bkG1ss4tlr#hedging-strategy", "label": "Note Purchase Agreement (Consumer Portfolio Services Inc)", "score": 16.0, "published": true}], "size": 2, "hash": "adc8ea49785afcb88d936bf2a592f115", "id": 8}, {"snippet_links": [{"key": "borrower-shall", "type": "clause", "offset": [0, 14]}, {"key": "compliance-with-the", "type": "clause", "offset": [21, 40]}, {"key": "with-respect-to", "type": "clause", "offset": [58, 73]}, {"key": "each-advance", "type": "clause", "offset": [74, 86]}, {"key": "hedge-counterparty", "type": "definition", "offset": [121, 139]}, {"key": "the-collection-account", "type": "clause", "offset": [156, 178]}, {"key": "swap-payments", "type": "definition", "offset": [183, 196]}, {"key": "to-the-borrower", "type": "clause", "offset": [205, 220]}, {"key": "in-respect-of", "type": "clause", "offset": [221, 234]}, {"key": "interest-rate-hedging-agreement", "type": "definition", "offset": [239, 270]}, {"key": "interest-rate-hedging-transaction", "type": "definition", "offset": [279, 312]}], "snippet": "Borrower shall be in compliance with the Hedging Strategy with respect to each Advance. 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"clause", "offset": [5055, 5072]}, {"key": "in-the-same-manner", "type": "definition", "offset": [5111, 5129]}, {"key": "terminated-transaction", "type": "definition", "offset": [5146, 5168]}, {"key": "section-14", "type": "definition", "offset": [5184, 5194]}, {"key": "after-an-event-of-default", "type": "clause", "offset": [5243, 5268]}, {"key": "payment-for", "type": "clause", "offset": [5399, 5410]}, {"key": "early-termination", "type": "definition", "offset": [5411, 5428]}, {"key": "the-provisions-of-section", "type": "clause", "offset": [5459, 5484]}], "snippet": "4.01 The Borrower acknowledges the significance of addressing the interest rate risk inherent in this Agreement in cooperation with the Lender. Along these lines:\n4.01.01 the Borrower undertakes to establish, together with the Lender, mechanisms to monitor the interest rate exposure and evaluate available hedge strategies;\n4.01.02 the Borrower invites the Lender to provide on a regular basis hedging ideas and products; and\n4.01.03 the Borrower undertakes that it shall, by no later than the date falling six (6) months from the Drawdown Date, enter into a Designated Transaction so as to limit its exposure under this Agreement to interest rate fluctuations on terms and conditions mutually agreed between the Borrower and the Lender.\n4.02 Any Designated Transaction shall be entered into on the basis of the Master Agreement and pursuant to the strategy set out herein and shall be concluded with the Lender.\n4.03 No Designated Transaction may be entered into by the Borrower:\n4.03.01 if a material adverse change occurs in the financial condition or operation of any one or more of the Security Parties or any other member of the Group and/or if any other Event of Default or a Possible Event of Default occurs;\n4.03.02 for a period longer than five (5) years, commencing on the date of the conclusion of the first Designated Transaction (by the time provided for in Clause 4.01.03);\n4.03.03 for an amount less than or equal to the whole amount of the Facility, as reducing from time to time thereafter pursuant to Clause 10.01 so that the notional principal amount of the continuing Designated Transactions does not (taking into account the scheduled amortisation) exceed at any relevant time the amount of the Facility as reducing from time to time thereafter pursuant to Clause 10.01;\n4.03.04 if the Lender determines that at the relevant time the Swap Exposure exceeds, or might exceed as a result thereof, the amount of One million Five hundred thousand Dollars ($1,500,000);\n4.04 Without prejudice and in addition to the Borrower's obligations under Clause 21, if at any time during the Security Period, the Lender determines that the Swap Exposure exceeds the amount of One hundred thousand Dollars ($100,000), the Borrower shall provide the Lender, within fifteen (15) days of being advised by the Lender of such excess, with additional security in form and substance in all respects acceptable to the Lender (valued in accordance with normal banking practice) and which in the sole opinion of the Lender provides security in an amount at least equal to the amount of such excess. Such additional security to be constituted by:\n4.04.01 pledged cash deposits to the credit of the Retention Account in an amount sufficient to cover such excess and/or;\n4.04.02 any other security acceptable to the Lender, provided in a manner satisfactory to the Lender in its sole discretion.\n4.05 Notwithstanding any provision of this Agreement and/or the Master Agreement to the contrary, if for any reason a Designated Transaction has been entered into but the Facility is not drawn under this Agreement then, subject to clause 4.06, the Lender shall be entitled but not obliged (and, where relevant, may do so without the consent of the Borrower where it would otherwise be required whether under the Master Agreement or otherwise) to amend, supplement, cancel, net out, terminate, liquidate, transfer or assign all or any part of the rights, benefits and obligations created by such Designated Transaction and/or the Master Agreement and/or to obtain or re-establish any hedge or related trading position in any manner and with any person the Lender in its absolute discretion may determine.\n4.06 If a Designated Transaction has been entered into but the Facility is not drawn down under this Agreement and the Lender in its absolute discretion agrees, following a written request of the Borrower, that the Borrower may be permitted to maintain all or part of a Designated Transaction, the Borrower shall, within fifteen (15) days of being notified by the Lender of such requirement, provide the Lender with, or procure the provision to the Lender of, such additional security as shall in the opinion of the Lender be adequate to secure the performance of such Designated Transaction, which additional security shall take such form and be constituted by such documentation, as the Lender in its absolute discretion may approve or require.\n4.07 The Borrower shall on the first written demand of the Lender indemnify the Lender in respect of all losses, costs and expenses (including, but not limited to, legal costs and expenses) incurred or sustained by the Lender as a consequence of or in relation to the effecting of any matter or transactions referred to in Clauses 4.05 and 4.06.\n4.08 Without prejudice to or limitation of the obligations of the Borrower under Clause 4.07, in the event that the Lender exercises any of its rights under Clauses 4.05 or 4.06 and such exercise results in all or part of a Designated Transaction being terminated such termination shall be treated under the Master Agreement in the same manner as if it were a Terminated Transaction (as defined in section 14 of the Master Agreement) effected by the Lender after an Event of Default (as so defined in that section 14) by the Borrower and, accordingly, the Lender shall be permitted to recover from the Borrower a payment for early termination calculated in accordance with the provisions of section 6(e)(i) of the Master Agreement.", "samples": [{"hash": "h6sc6pWDB17", "uri": 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"size": 3, "hash": "24761f48da419f02ef497ab71510b546", "id": 4}, {"snippet_links": [{"key": "borrower-shall", "type": "clause", "offset": [0, 14]}, {"key": "to-lender", "type": "definition", "offset": [96, 105]}, {"key": "for-the-avoidance-of-doubt", "type": "clause", "offset": [107, 133]}, {"key": "obligation-of-borrower", "type": "clause", "offset": [139, 161]}, {"key": "right-of-lender", "type": "clause", "offset": [284, 299]}, {"key": "rate-reduction", "type": "definition", "offset": [348, 362]}], "snippet": "Borrower shall have implemented and maintained a Hedging Strategy that is reasonably acceptable to Lender. For the avoidance of doubt, the obligation of Borrower to implement and maintain a reasonably acceptable Hedging Strategy under this Section 4.02(k) shall not derogate from the right of Lender to make a determination resulting in an Advance Rate Reduction.", "samples": [{"hash": "fypDG3KPfzP", "uri": "/contracts/fypDG3KPfzP#hedging-strategy", "label": "Warehouse Lending Agreement (Triad Financial Corp)", "score": 18.0, "published": true}, {"hash": "areJUNV7ugf", "uri": "/contracts/areJUNV7ugf#hedging-strategy", "label": "Warehouse Lending Agreement (Triad Financial Corp)", "score": 18.0, "published": true}], "size": 2, "hash": "2921b03a7e1f958132cfb689f2b11ff1", "id": 5}, {"snippet_links": [{"key": "the-borrower", "type": "definition", "offset": [0, 12]}, {"key": "interest-rate-hedging", "type": "clause", "offset": [32, 53]}, {"key": "for-the-purpose-of", "type": "definition", "offset": [63, 81]}, {"key": "interest-rates", "type": "clause", "offset": [127, 141]}, {"key": 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"type": "definition", "offset": [3225, 3252]}, {"key": "agreement-to-be", "type": "clause", "offset": [3347, 3362]}, {"key": "permitted-use", "type": "clause", "offset": [3397, 3410]}, {"key": "in-respect-of", "type": "clause", "offset": [3458, 3471]}, {"key": "the-applicable", "type": "clause", "offset": [3539, 3553]}, {"key": "subject-to", "type": "definition", "offset": [3647, 3657]}, {"key": "early-termination", "type": "definition", "offset": [3658, 3675]}, {"key": "investment-earnings", "type": "clause", "offset": [3708, 3727]}, {"key": "required-by", "type": "definition", "offset": [3764, 3775]}, {"key": "during-the-term-of-this-agreement", "type": "clause", "offset": [3843, 3876]}, {"key": "period-of", "type": "definition", "offset": [3946, 3955]}, {"key": "outstanding-transactions", "type": "definition", "offset": [3960, 3984]}, {"key": "in-effect", "type": "definition", "offset": [4017, 4026]}, {"key": "five-percent", "type": "clause", "offset": [4313, 4325]}, {"key": "after-giving", "type": "clause", "offset": [4332, 4344]}, {"key": "payment-of-principal", "type": "definition", "offset": [4360, 4380]}, {"key": "related-payment-date", "type": "definition", "offset": [4388, 4408]}, {"key": "pending-event-of-default", "type": "definition", "offset": [4495, 4519]}, {"key": "specific-agreements", "type": "definition", "offset": [4628, 4647]}, {"key": "at-any-time", "type": "clause", "offset": [4724, 4735]}, {"key": "existing-hedge-agreements", "type": "definition", "offset": [5030, 5055]}, {"key": "sole-discretion", "type": "clause", "offset": [5127, 5142]}, {"key": "based-on", "type": "clause", "offset": [5299, 5307]}, {"key": "calculation-periods", "type": "definition", "offset": [5366, 5385]}, {"key": "the-requirements", "type": "clause", "offset": [5405, 5421]}, {"key": "section-37", "type": "clause", "offset": [5430, 5441]}], "snippet": "(a) At all times on and after the Closing Date, the Borrower shall have established and shall maintain one or more Hedge Agreements with an aggregate notional schedule provided by the Administrator on behalf of the Borrower and acceptable to the Lender and consistent with a strategy designed to offset the risk of interest rate movements, which strategy (the \"Hedge Strategy\") shall include, without limitation, the execution of Hedge Agreements which (i) are calculated to avoid or remedy any Excess Spread Deficiency or Swap Spread Deficiency, (ii) provide that the notional amounts thereunder shall amortize according to the expected amortization of the Aggregate Loan Balance as of the date of execution of each such Hedge Agreement (assuming a prepayment speed of 1.2% ABS) and (iii) in the aggregate, shall cover 100% of the then Aggregate Loan Balance (as adjusted from time to time pursuant to the terms hereof). The Borrower shall deliver to the Secured Party a copy of each Hedge Agreement entered into between the Borrower and any other Person and each confirmation related thereto. As additional security hereunder, the Borrower shall, pursuant to the Auto Fund Security Agreement, assign to the Lender all rights (but none of the obligations) of the Borrower under each Hedge Agreement, including, but not limited to, all present and future amounts payable by a Hedge Counterparty to the Borrower under or in connection with such Hedge Agreement, and all such amounts payable by a Hedge Counterparty shall be paid by it directly to the Collection Account. The Borrower acknowledges that, as a result of such assignment, it may not, without the prior written consent of the Lender, exercise any rights under any Hedge Agreement that would adversely affect the rights of the Lender, as the beneficiary of the Borrower's assignment of its rights under such Hedge Agreement to the Lender; provided that nothing herein or in the Auto Fund Security Agreement shall have the effect of releasing the Borrower from any of its obligations under a Hedge Agreement nor be construed as requiring the consent of the Lender for the performance of the Borrower's obligations thereunder.\n(b) Each Hedge Agreement shall provide that if the Hedge Counterparty or any party providing credit support on its behalf suffers a Hedge Counterparty Downgrade Event, the Hedge Counterparty will be required to (i) transfer (at its own cost) all of its rights and obligations under its Hedge Agreement to an Eligible Hedge Counterparty in accordance with the terms of its Hedge Agreement within 60 days after the occurrence of the Hedge Counterparty Downgrade Event or (ii) within 10 Business Days after the occurrence of the Hedge Counterparty Downgrade Event, post collateral reasonably acceptable to the Lender securing its obligation under the Hedge Agreement. In the event the Hedge Counterparty fails to transfer its rights and interests under the Hedge Agreement or post collateral, as applicable, in accordance with the terms of this Agreement, the Lender, as collateral assignee of the Borrower, shall have the right to terminate the Hedge Agreement and require the Borrower to, and the Borrower shall, simultaneously enter into a replacement Hedge Agreement.\n(c) The Borrower shall cause any collateral received from a Hedge Counterparty under a Hedge Agreement to be delivered to the Lender. The only permitted use of any such collateral delivered to the Lender in respect of any Hedge Agreement shall be (i) for application to obligations of the applicable Hedge Counterparty to the Borrower under its Hedge Agreement if such Hedge Agreement becomes subject to early termination or (ii) to return collateral or investment earnings to such Hedge Counterparty when and required by such Hedge Agreement.\n(d) The Administrator agrees that at no time during the term of this Agreement will the aggregate notional amounts for the then current calculation period of all outstanding transactions under each Hedge Agreement then in effect materially mismatch the then Aggregate Loan Balance (i.e., the difference between the aggregate notional amounts for the then current calculation period of all outstanding transactions under each Hedge Agreement then in effect is less than or greater than the Aggregate Loan Balance by five percent (5%)) after giving effect to each payment of principal on the related Payment Date. So long as any Excess Spread Deficiency, Swap Spread Deficiency, Event of Default or Pending Event of Default is then continuing, neither the Administrator nor the Borrower may exercise any discretion in selecting the specific agreements and notional amounts thereof to be terminated or reduced. In the event that at any time there is a material mismatch (i.e., the difference between the aggregate notional amounts for the then current calculation period of all outstanding transactions under each Hedge Agreement then in effect is less than or greater than the Aggregate Loan Balance by five percent (5%)) between the existing Hedge Agreements and the Aggregate Loan Balance, the Lender shall have the right in its sole discretion to reduce or increase, as necessary, the notional amounts, in whole or in part, for all outstanding transactions under each Hedge Agreement then in effect, based on the respective notional amounts for current and remaining calculation periods in accordance with the requirements of this Section 3.7.", "samples": [{"hash": "28ubIbbSAWJ", "uri": "/contracts/28ubIbbSAWJ#hedging-strategy", "label": "Credit Agreement (E Loan Inc)", "score": 18.0, "published": true}], "size": 2, "hash": "a08e26160c1a5d34d31b2896097a8e80", "id": 7}, {"snippet_links": [{"key": "the-company-shall", "type": "clause", "offset": [0, 17]}, {"key": "in-accordance-with", "type": "definition", "offset": [81, 99]}], "snippet": "The Company shall procure that the Hedging Strategy is implemented substantially in accordance with its terms.", "samples": [{"hash": "egvUhPcf0n1", "uri": "/contracts/egvUhPcf0n1#hedging-strategy", "label": "Term and Revolving Credit Facility (Meggit PLC)", "score": 18.0, "published": true}], "size": 1, "hash": "58bae538a749adda2d433809f08ae229", "id": 9}, {"snippet_links": [{"key": "date-of", "type": "clause", "offset": [71, 78]}, {"key": "initial-utilisation", "type": "definition", "offset": [83, 102]}], "snippet": "The Hedging Strategy is not implemented within ninety (90) days of the date of the initial Utilisation and maintained thereafter.", "samples": [{"hash": "9hVwbkodDt7", "uri": "/contracts/9hVwbkodDt7#hedging-strategy", "label": "Term Loan Facility Agreement (Advanced Micro Devices Inc)", "score": 19.0, "published": true}], "size": 1, "hash": "57d372be93242462cd94c3c4d5047238", "id": 10}], "next_curs": "ClkSU2oVc35sYXdpbnNpZGVyY29udHJhY3RzcjULEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2IhloZWRnaW5nLXN0cmF0ZWd5IzAwMDAwMDBhDKIBAmVuGAAgAA==", "clause": {"children": [], "title": "Hedging Strategy", "parents": [["general-covenants", "General Covenants"], ["initial-and-subsequent-advances", "Initial and Subsequent Advances"], ["affirmative-covenants", "Affirmative Covenants"], ["covenants", "Covenants"], ["conditions-precedent-to-all-loans", "Conditions Precedent to All Loans"]], "size": 37, "id": "hedging-strategy", "related": [["hedging", "Hedging", "Hedging"], ["hedging-arrangements", "Hedging Arrangements", "Hedging Arrangements"], ["hedging-agreements", "Hedging Agreements", "Hedging Agreements"], ["hedging-agreement", "Hedging Agreement", "Hedging Agreement"], ["banking-services-and-swap-agreements", "Banking Services and Swap Agreements", "Banking Services and Swap Agreements"]], "related_snippets": [], "updated": "2025-07-07T12:37:48+00:00"}, "json": true, "cursor": ""}}