Demand for Collateral Clause Samples

The Demand for Collateral clause gives one party the right to require the other party to provide additional security or collateral under certain circumstances, such as a decline in creditworthiness or a change in market conditions. In practice, this means that if the value of existing collateral falls below a specified threshold or if there are concerns about a party’s ability to fulfill its obligations, the party at risk can formally request more collateral to be posted. This clause serves to protect the requesting party from potential losses by ensuring that sufficient assets are available to cover obligations, thereby reducing credit risk and promoting financial stability in the contractual relationship.
Demand for Collateral. Without prejudice to any provision of this Agreement, if a Delivery Amount for a Valuation Date equals or exceeds the Pledgor's Minimum Transfer Amount, then the Pledgor will, without prior demand by the Secured Party, Transfer to the Secured Party Eligible Credit Support in accordance with Paragraph 3(a).
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Demand for Collateral. (a) Notwithstanding anything herein to the contrary, the Pledgor may only Pay or Deliver Collateral to the Secured Party or cause the issuance of Letters of Credit in favor of the Secured Party with respect to a Swap Transaction to the extent so provided herein or in the related Confirmation. On any Business Day, the Calculation Agent shall, upon written request from Counterparty, provide Counterparty with its calculation of the Aggregate Collateral Requirement and the aggregate Value of Collateral. (b) Unless provided otherwise in the Confirmation confirming a Swap Transaction, by written notice to the Pledgor, the Secured Party may as of the first Business Day of each calendar week after a Security Event has occurred with respect to a Swap Transaction when the Aggregate Collateral Requirement exceeds an amount equal to or greater than the Pledgor Threshold Amount, require the Pledgor to comply with the provisions of Section 2(c) of this Agreement; provided, however, that if at any time (X) a Pledgor (or The Goldman Sachs Group, L.P. with respect to Goldman as Pledgor) has outstan▇▇▇▇ ▇▇ng-term, unsecured, unsubordinated debt securities which are rated below Baa3 or BBB- by either Moody's or S&P, respectively, or (b) after a Pledger has Delivered or Paid Collateral pursuant to Section 2(c), the Ag▇▇▇▇▇▇▇ Collateral Requirement exceeds by US $1,000,000 or more the Value of Collateral held by the Secured Party (a Subsequent Threshold Event") then the Secured Party can require the Pledgor to comply with Section 2(c) on any Business Day after a Security Event has occurred or of any Subsequent Threshold Event, as the case may be. Such notice shall specify the Aggregate Collateral Requirement, shall provide details of the manner in which the Aggregate Collateral Requirement was determined, and shall (unless previously notified to the Pledgor) specify any account or other information necessary for the issuance of, Delivery, or Payment of Collateral. (c) Unless provided otherwise in the Confirmation confirming a Swap Transaction, the Pledgor shall, within two Business Days of receipt of such notice (if received by 11:00 a.m. New York time on a Business Day), cause one or more Letters of Credit to be issued in favor of the Secured Party or Pay or Deliver other Collateral to the Secured Party having an aggregate Value of not less than an amount equal to (i) the Aggregate Collateral Requirement on the date of and as specified in such notice, minus (ii) the Pledgor T...
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Related to Demand for Collateral

  • Liability for Collateral So long as Collateral Agent and the Lenders comply with reasonable banking practices regarding the safekeeping of the Collateral in the possession or under the control of Collateral Agent and the Lenders, Collateral Agent and the Lenders shall not be liable or responsible for: (a) the safekeeping of the Collateral; (b) any loss or damage to the Collateral; (c) any diminution in the value of the Collateral; or (d) any act or default of any carrier, warehouseman, bailee, or other Person. Borrower bears all risk of loss, damage or destruction of the Collateral.

  • The Lender Group’s Liability for Collateral Each Borrower hereby agrees that: (a) so long as Agent complies with its obligations, if any, under the Code, the Lender Group shall not in any way or manner be liable or responsible for: (i) the safekeeping of the Collateral, (ii) any loss or damage thereto occurring or arising in any manner or fashion from any cause, (iii) any diminution in the value thereof, or (iv) any act or default of any carrier, warehouseman, bailee, forwarding agency, or other Person, and (b) all risk of loss, damage, or destruction of the Collateral shall be borne by Borrowers.

  • Bank’s Liability for Collateral So long as Bank complies with reasonable banking practices regarding the safekeeping of the Collateral in the possession or under the control of Bank, Bank shall not be liable or responsible for: (a) the safekeeping of the Collateral; (b) any loss or damage to the Collateral; (c) any diminution in the value of the Collateral; or (d) any act or default of any carrier, warehouseman, bailee, or other Person. Borrower bears all risk of loss, damage or destruction of the Collateral.

  • Lender’s Liability for Collateral So long as Lender complies with its obligations, if any, under the Code, Lender shall not in any way or manner be liable or responsible for: (a) the safekeeping of the Collateral; (b) any loss or damage thereto occurring or arising in any manner or fashion from any cause other than Lender’s gross negligence or willful misconduct; (c) any diminution in the value thereof; or (d) any act or default of any carrier, warehouseman, bailee, forwarding agency, or other Person whomsoever. All risk of loss, damage or destruction of the Collateral shall be borne by Borrower.

  • Security Interest in the Collateral To secure the prompt payment and performance to Agent and each Lender of the Obligations, each Borrower hereby assigns, pledges and grants to Agent for its benefit and for the ratable benefit of each Lender a continuing security interest in and to and Lien on all of its Collateral, whether now owned or existing or hereafter acquired or arising and wheresoever located. Each Borrower shall ▇▇▇▇ its books and records as may be necessary or appropriate to evidence, protect and perfect Agent’s security interest and shall cause its financial statements to reflect such security interest. Each Borrower shall promptly provide Agent with written notice of all commercial tort claims, such notice to contain the case title together with the applicable court and a brief description of the claim(s). Upon delivery of each such notice, such Borrower shall be deemed to hereby grant to Agent a security interest and lien in and to such commercial tort claims and all proceeds thereof.