Examples of Initial Hedge Agreement in a sentence
Subject to a mutual agreement with respect to a custodial arrangement, LaSalle Bank National Association will act as the custodian of the Issuer under the Initial Hedge Agreement and will comply with the Issuer’s instructions with respect to any collateral posted pursuant to such Initial Hedge Agreement.
On the Closing Date, the Issuer will enter into the Initial Hedge Agreement to mitigate a portion of the mismatch between the floating rates of interest on the Notes and any fixed rates of interest on the underlying Collateral Debt Securities.
No assurance can be made, however, that the Issuer will enter into any such other Hedge Agreements or that the Initial Hedge Agreement or any such other Hedge Agreements will eliminate all material interest rate risks to the Issuer.
Under the Initial Hedge Agreement, on each Payment Date, the Issuer will pay an amount equal to the Issuer Initial Hedge Payment Amount and, on the Business Day preceding each of the Payment Dates, the Initial Hedge Counterparty will pay an amount equal to the Initial Hedge Counterparty Payment Amount.
The Trustee shall, prior to the Closing Date in respect of the Initial Hedge Agreement, cause the Custodian to establish a segregated, non-interest bearing Securities Account which shall be designated as a “Hedge Counterparty Collateral Account” with respect to the Hedge Counterparty in respect of which the Trustee shall be the Entitlement Holder and which the Trustee shall hold in trust for the benefit of the Secured Parties.