Margin Changes; Adjustments for Margin Changes Clause Samples
The "Margin Changes; Adjustments for Margin Changes" clause defines how parties to an agreement will handle changes in margin requirements, such as those imposed by regulatory authorities or clearinghouses. It typically outlines the procedures for notifying the other party of margin changes, the timing for posting additional collateral, and the methods for adjusting existing margin arrangements to remain compliant. This clause ensures that both parties are protected against increased credit risk due to evolving regulatory standards, maintaining the integrity and security of the transaction by requiring timely adjustments to collateral obligations.
Margin Changes; Adjustments for Margin Changes. (1) Changes in Applicable Pricing Rate shall be effective:
(a) in the case of outstanding Bankers’ Acceptances, upon the earlier of (i) 5 Banking Days after any change in the Debt Rating or when the relevant debt ceases to be rated, and (ii) the next Rollover or Conversion thereof after such change or cessation in rating, as the case may be;
(b) in all other cases, immediately upon any change in the relevant debt rating of the Borrower or when the relevant debt of the Borrower ceases to be rated; and
(c) without the necessity of notice to the Borrower.
(2) For any Loans outstanding as of the effective date of a change in an Applicable Pricing Rate:
(a) in the case of increases in such rates per annum, the Borrower shall pay to the Agent for the account of the Lenders such additional interest or fees, as the case may be, as may be required to give effect to the relevant increases in the interest or fees payable on or in respect of such Loans from and as of the effective date of the relevant increase in rates; and
(b) in the case of decreases in such rates per annum, the Borrower shall receive a credit against subsequent interest payable on Loans or fees payable pursuant to Section 5.6, or Section 6.2, as the case may be, to the extent necessary to give effect to the relevant decreases in the interest or fees payable on or in respect of such Loans from and as of the effective date of the relevant decrease in rates.
(3) The additional payments required by Section 7.7(2)(a) shall be made on the first Banking Day of the calendar month immediately following the calendar month in which the changes in Applicable Pricing Rate are effective. The adjustments required by Section 7.7(2)(b) shall be accounted for in successive interest and fee payments by the Borrower until the amount of the credit therein contemplated has been fully applied; provided that, upon satisfaction in full of all Obligations and cancellation of the Credit Facility in accordance herewith, the Lenders shall pay to the Borrower an amount equal to any such credit which remains outstanding.
(4) The Borrower shall give written notice to the Agent and agrees to give notice to the Agent of any change in the Debt Rating by S&P or DBRS promptly upon becoming actually aware of such change. For certainty, the change in the Applicable Pricing Rate shall, subject to Section 7.7(1)(a), be effective from the date of the change in the Debt Rating by S&P or DBRS, as the case may be, regardless of the date notic...
Margin Changes; Adjustments for Margin Changes. (1) Changes in Applicable Pricing Rate shall be effective:
(a) from and as of the day the Borrower delivers a Compliance Certificate pursuant hereto evidencing a change in the Consolidated Senior Debt to EBITDA Ratio which results in a change in the Applicable Pricing Rate in accordance with the provisions of such definition; and
(b) without the necessity of notice to the Borrower, provided that, notwithstanding the foregoing provisions of this Section 7.7, if the Borrower has failed to deliver a Compliance Certificate for the immediately preceding fiscal quarter in accordance with the provisions hereof, then the Consolidated Senior Debt to EBITDA Ratio shall be deemed to be greater than 3.00:1.00 for the purposes of determining the Applicable Pricing Rate until the Borrower has remedied such failure and delivered such Compliance Certificate (and, from and after such delivery, the Applicable Pricing Rate shall be based upon the Consolidated Senior Debt to EBITDA Ratio set forth in such Compliance Certificate for the remainder of the period until the next such Compliance Certificate is required to be delivered hereunder). With respect to ▇▇▇▇▇ Loans and SOFR Loans outstanding on the effective date of any such change in Applicable Pricing Rate, changes in the Applicable Pricing Rate shall become applicable thereto upon the next Rollover or Conversion thereof after such change.
Margin Changes; Adjustments for Margin Changes. Changes in the Applicable Pricing Rate for the Credit Facilities shall be effective (without the necessity of any notice to any of the Borrowers) from and as of the day upon which the Canadian Borrower delivers a Compliance Certificate pursuant to Section 9.1(e)(iv) which evidences a change in the Senior Secured Debt to EBITDA Ratio that would result in a change in the level in the table set out in the definition of Applicable Pricing Rate that is applicable to the Credit Facilities; provided that, in the case of Benchmark Loans, such change will not be effective until the next Rollover or Conversion thereof after such change.
Margin Changes; Adjustments for Margin Changes. (1) Changes in Applicable Pricing Rate shall be effective:
(a) immediately upon any change in the Debt Rating or when the relevant debt of the Borrower ceases to be rated; and
(b) without the necessity of notice to the Borrower.
(2) The Borrower shall give written notice to the Agent and agrees to give notice to the Agent of any change in the Debt Rating by S&P or DBRS promptly upon becoming actually aware of such change. For certainty, the change in the Applicable Pricing Rate shall, subject to Section 6.7(1)(a), be effective from the date of the change in the Debt Rating by S&P or DBRS, as the case may be, regardless of the date notice thereof is given by the Borrower to the Agent.
Margin Changes; Adjustments for Margin Changes. Changes in the Applicable Pricing Rate for the Revolving Credit Facilities shall be effective (without the necessity of any notice to any of the Borrowers) from and as of the day upon which the Borrower delivers a Compliance Certificate pursuant to Section 10.1(e)(iv) which evidences a change in the Senior Secured Debt to EBITDA Ratio that would result in a change in the level in the table set out in the definition of Applicable Pricing Rate that is applicable to the Revolving Credit Facilities; provided that, in the case of outstanding Bankers’ Acceptances or SOFR Loans, such change will not be effective until the next Rollover or Conversion thereof after such change.
Margin Changes; Adjustments for Margin Changes