Hedging Condition definition

Hedging Condition means the circumstance that as of the later of (x) the date that is 90 days following the Closing Date and (y) April 1, 2012, the Borrower shall have entered into Hedge Agreements in respect of commodities the net notional volumes for which are not less than 50% of the reasonably anticipated projected Hydrocarbon production from the Credit Parties’ total Proved Developed Producing Reserves as forecast based upon the Initial Reserve Report for a term of five years (or for a shorter period if an equal amount of such notional volumes is hedged on a weighted-average basis (e.g., 100% of such anticipated production for a period of 2.5 years)).

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Hedging Condition means, in respect of a Hedge Agreement or a Hedge Transaction, receipt by the Collateral Manager of legal advice from reputable legal counsel to the effect that the entry into such arrangements shall not require any of the Issuer, its directors or officers or the Collateral Manager or its directors, officers or employees to register with the United States Commodities Futures Trading Commission as a commodity pool operator or a commodity trading advisor pursuant to the United States Commodity Exchange Act of 1936, as amended.

Hedging Condition means the circumstance that, as of the date that is 60 days following the Closing Date, the Borrower shall have delivered to the Administrative Agent reasonably satisfactory evidence demonstrating that the Credit Parties have entered into Hedging Transactions with approved counterparties with respect to not less than 50% of the quarterly projected production of oil and natural gas, calculated separately, from Proved Developed Producing Reserves included in the Initial Reserve Report for each quarter during the period of twenty-four (24) consecutive months immediately following the Closing Date at prices acceptable to the Administrative Agent.

Examples of Hedging Condition in a sentence

• If at any time the Borrower fails to satisfy the Hedging Condition, the Administrative Agent at the direction of the Required Lenders shall redetermine the Borrowing Base in accordance with their respective usual and customary oil and gas lending criteria as they exist at the particular time.

• If the Borrower has not completed the Hedging Condition on or before the thirtieth (30th) day following the Closing Date, the Administrative Agent at the direction of the Required Lenders shall redetermine the Borrowing Base in accordance with their respective usual and customary oil and gas lending criteria as they exist at the particular time.

• The Borrower agrees, if the Hedging Condition shall exist and if requested by the Agent, and in any case in consultation with the Agent, to procure and maintain in effect, for so long as such Hedging Condition shall continue to exist, Qualifying Interest Rate ▇▇▇▇▇▇ in respect of the Pledged Receivables.

• Furthermore, any amounts remaining on deposit in the Hedge Reserve Account (i) while a Mandatory Hedging Condition exists and (ii) at any time that the Borrower is Fully 61 149194398v7 Hedged, may be withdrawn from the Hedge Reserve Account by the initial Servicer and paid to, or as directed by, the Borrower.

• The Borrower agrees, if the Hedging Condition shall exist and if requested by the Agent, and in any case in consultation with the Agent, to procure and maintain in effect, for so long as such Hedging Condition shall continue to exist, Qualifying Interest Rate H▇▇▇▇▇ in respect of the Pledged Receivables.

More Definitions of Hedging Condition

Hedging Condition means that, as of any date of determination, the average Excess Spread for the three most recently elapsed calendar months is less than the sum of (i) the average of the Minimum Excess Spread determined as of the end of each of such three calendar months, plus (ii) 0.40%.

Hedging Condition means, with respect to a Hedge Transaction, either (a) the Collateral Manager is satisfied that, at the time such Hedge Transaction is entered into by the Issuer, such Hedge Transaction complies with the U.S. Commodity Futures Trading Commission ("CFTC") interpretation concerning securitisation vehicle exemption from the definition of "commodity pool" or (b) the Collateral Manager obtains legal advice of reputable legal counsel that such Hedge Transaction will not cause the Issuer or the Collateral Manager to be required to register as a "commodity pool operator" with the CFTC with respect to the Issuer.

Hedging Condition means that on or before the thirtieth (30th) day following the Closing Date, the Borrower shall have entered into or be subject to Hedge Agreements in respect of oil and gas commodities (but excluding natural gas liquids) the net notional volumes for which are not less than (a) with respect to crude oil, 65% for each month during the period from the Closing Date through September 30, 2022 and (b) with respect to natural gas, 50% for each month during the period from the Closing Date through September 30, 2021, in each case, of the reasonably anticipated projected Hydrocarbon production on a forward basis from the Credit Parties’ total Proved Developed Producing Reserves as forecasted for such period (based upon the Initial Reserve Reports).

Hedging Condition means the circumstance that as of the later of (x) the date that is 90 days following the Closing Date and

Hedging Condition means, in respect of a Hedge Agreement or a Hedge Transaction, receipt by the Collateral Manager of legal advice from reputable legal counsel to the effect that the entry into such arrangements shall not require any of the Issuer, its Directors or officers or the Collateral Manager or its directors, officers or employees to register with the United States Commodities Futures Trading

Hedging Condition means the circumstance that as of the date that is 90 days following the Closing Date, the Borrower shall have entered into or be subject to Hedge Agreements in respect of commodities the net notional volumes for which are not less than 40% of the reasonably anticipated projected Hydrocarbon production on a forward basis from the Credit Parties’ total Proved Developed Producing Reserves as forecast based upon the Initial Reserve Report for a term of five years (or for a shorter period if an equal amount of such notional volumes is hedged on a weighted-average basis (e.g., 80% of such anticipated production for a period of 2.5 years)). It is understood and agreed that the Hedging Condition is satisfied as of the Closing Date.

Hedging Condition means that: