Common use of Determination of Final Deficiency Amount Clause in Contracts

Determination of Final Deficiency Amount. (a) The final credit support amount to be settled from the MMLF Fund and the other MMLF Fund Assets with respect to any Item of MMLF Collateral shall be a final deficiency amount (the “Final Deficiency Amount”) equal to: (i) the amount of the extension of credit by the Reserve Bank to a borrower corresponding to such Item of MMLF Collateral (inclusive of accrued interest thereon) in accordance with the applicable Letter of Agreement, minus (ii) the net cash proceeds received by the Reserve Bank upon the disposition of such Item of MMLF Collateral (whether by sale or other disposition), or, if no such disposition shall have occurred, an amount mutually agreed between Treasury and the Reserve Bank to approximate fair value to the extent practicable. (b) The Final Deficiency Amount for any Item of MMLF Collateral shall be calculated as of the date of final disposition of such Item of MMLF Collateral by the Reserve Bank (or, if no such disposition shall have occurred, as of the date mutually agreed between Treasury and the Reserve Bank), and the amount shall be payable by Treasury to the Reserve Bank; provided that in no event shall the aggregate amount payable by Treasury to the Reserve Bank hereunder exceed the Credit Support Amount together with any amounts payable to Treasury under Section 2.5 below.