Examples of Commodity Swap in a sentence
If on the settlement day the fixed price and the market price of the Transaction’s underlying commodity are different, the parties must pay to difference to one another regarding the defined amount (net settlement) in a way that if the fixed price in the agreement is higher than the market price, the buyer of the Commodity Swap, and if the market rate is higher than the fixed price, the seller of the Commodity Swap will have to make a payment to the other party.
Another type of Swaps is Commodity Swap Agreements where the contracting parties agree to exchange payments on a pre-agreed quantity of a commodity (crude oil or refined products, precious metals, agricultural commodities), with the one party paying a fixed price for the good and the other party paying a floating price.
The Borrower will not, and will not permit any other Loan Party to, enter into or maintain any Exchange Rate Swap Contract, Interest Rate Swap Contract, Commodity Swap Contract and any other derivative agreement or other similar agreement or arrangements (collectively, the “Hedging Agreements”), unless such Hedging Agreement is entered into for hedging purposes only in the ordinary course of business and not for speculative purposes.
The Borrower will not, and will not permit any other Loan Party to, enter into or maintain any Exchange Rate Swap Contract, Interest Rate Swap Contract, Commodity Swap Contract and any other derivative agreement or other similar agreement or arrangements (collectively, the "Hedging Agreements"), unless such Hedging Agreement is entered into for hedging purposes only in the ordinary course of business and not for speculative purposes.
ACQ = Adjusted Daily Contract Quantity; DCQ = [6,000]; AD = Additional Discount; SF = The average of the fees paid to Commodity Swap Counterparties under the Commodity Swaps; and MD = Monthly Discount EXHIBIT C FORM OF ASSET MANAGEMENT AGREEMENT [To be attached.] ME1 32505648v.1 HB Draft 20 January 2020 ASSET MANAGEMENT AGREEMENT [ ], 2020 This Asset Management Agreement (this “AMA”) is entered into on the date set forth above by and between X.