Common use of Margining Clause in Contracts

Margining. 12.1 No margining is required for bilaterally settled Transactions between the successful Eligible Counterparty and the Authority, as the collateral of such Transactions are subject to Haircuts calibrated to the respective tenors of the Transactions. For operational details on bilateral settlement, please refer to Appendices A and B of the Agreement. 12.2 Daily gross margining shall apply to each Transaction settled via Appointed Triparty Agent(s). The collateral of such Transaction is subject to a smaller Haircut in view of the daily margining. For operational details on settlement via the Appointed Triparty Agent(s), please refer to Appendix C of the Agreement. 12.3 Notwithstanding clause 12.1, the Authority reserves the right to: (a) require a successful Eligible Counterparty to transfer additional Eligible Collateral to the Authority for any bilaterally settled Transaction if the pre-Haircut mark-to-market value of the Eligible Collateral for such 14 The FX spot rate and OIS rates should be as of New York Close. Banks may check the setting via the “XDF” command on the same Bloomberg page. Transaction falls below the value of the USD Principal in the opening leg of that Transaction; or (b) impose daily gross margining requirements for any bilaterally settled Transaction by issuing a written notice to the successful Eligible Counterparty, should the Authority, in its sole discretion, decide that it is necessary to do so. The successful Eligible Counterparty shall ensure that the post-Haircut value of the Eligible Collateral transferred to the Authority in the opening leg of the Transaction is at least equal to the value of the USD Principal in the opening leg of that Transaction.

Margining. 12.1 No margining is required for bilaterally settled Transactions between the successful Eligible Counterparty and the Authority, as the collateral of such Transactions are subject to Haircuts calibrated to the respective tenors of the Transactions. For operational details on bilateral settlement, please refer to Appendices A and B of the Agreement. 12.2 Daily gross margining shall apply to each Transaction settled via Appointed Triparty Agent(s). The collateral of such Transaction is subject to a smaller Haircut in view of the daily margining. For operational details on settlement via the Appointed Triparty Agent(s), please refer to Appendix C of the Agreement. 12.3 Notwithstanding clause 12.1, the Authority reserves the right to: (a) require a successful Eligible Counterparty to transfer additional Eligible Collateral to the Authority for any bilaterally settled Transaction if the pre-Haircut mark-to-market value of the Eligible Collateral for such 14 The FX spot rate and OIS rates should be as of New York Close. Banks may check the setting via the “XDF” command on the same Bloomberg page. Transaction falls below the value of the USD Principal in the opening leg of that Transaction; or (b) impose daily gross margining requirements for any bilaterally settled Transaction by issuing a written notice to the successful Eligible Counterparty, should the Authority, in its sole discretion, decide that it is necessary to do so. The successful Eligible Counterparty shall ensure that the post-Haircut value of the Eligible Collateral transferred to the Authority in the opening leg of the Transaction is at least equal to the value of the USD Principal in the opening leg of that Transaction.