Common use of Hedging Liability Clause in Contracts

Hedging Liability. Notwithstanding any provision hereof or in any other Loan Document to the contrary, in the event that any Credit Party is not an “eligible contract participant” as such term is defined in Section 1(a)(18) of the Commodity Exchange Act, as amended, at the time (i) any transaction is entered into under any obligations arising under any Hedge Agreement or (ii) such Person becomes a Borrower or Guarantor hereunder, and the effect of the foregoing would be to render any Obligations of any Borrower or Guarantor of such Person violative of the Commodity Exchange Act, the Obligations of such Person shall not include (x) in the case of clause (i) above, such transaction and (y) in the case of clause (ii) above, any transactions outstanding under any obligations arising under any Hedge Agreement as of the date such Person becomes a Borrower or Guarantor hereunder.