Examples of Optional Termination Amounts in a sentence
However, contrary to the Swap Counterparties’ representations,19 they do not have the ability to exercise their Optional Termination Rights and collect the Optional Termination Amounts.
Section 3 of the Forbearance Agreement entitles the City to direct the Swap Counterparties to exercise their Optional Termination Rights under the Optional Termination Provisions of the Swap Contracts, which will trigger the payment of the Optional Termination Amounts (approximately $222 million to $243 million) by the City to the Swap Counterparties.
The City and the Swap Counterparties have attempted to maneuver around this limitation by having the City, as opposed to the Service Corporations, pay the Optional Termination Amounts to the Swap Counterparties.20 To adopt this interpretation does not make sense because the Service Corporations have no source of funding except the City.
Likewise, criminal grievances would be handled with applicable legal procedures.
The Optional Termination Amounts will be determined by an agreed methodology among the parties and will be based on the present value of the amounts due under the Swap Agreements, as adjusted to take into account three(3) basis points of breakage costs.
If the Postpetition Financing is approved, the City believes it will be in a position to close on the financing shortly thereafter and to issue an Optional Termination Notice in advance of the January 7, 2014 expiration of the Purchaser’s commitment in order to take advantage of the discount on the Optional Termination Amounts under the Forbearance Agreement, if approved.
The City intends, and believes it is well positioned to, cause the exercise of the Termination Rights and thus, take advantage of an 18% reduction in the Optional Termination Amounts (and perhaps a larger reduction if there is agreement to extend the Payment Adjustment Dates).
Importantly, the Forbearance Agreement permits the City to cause the Termination Rights to be exercised only once, and in connection with theissuance of any Optional Termination Notice, the City must demonstrate to the Swap Counterparties that it has sufficient wherewithal to fund payment of the Optional Termination Amounts.
Such Optional Termination Notice shall be accompanied by evidence reasonably satisfactory to each of UBS and MLCS that the City will have funds on the Optional Termination Date sufficient to pay in cash the Optional Termination Amounts as set forth in Section 3.3 below (the “Supporting Information”).