Option to Contribute Derivative Instrument Clause Samples

The "Option to Contribute Derivative Instrument" clause grants a party the right, but not the obligation, to transfer or contribute a financial derivative instrument—such as an option, swap, or futures contract—into a specified arrangement or entity. In practice, this means that if certain conditions are met, the holder of the option can choose to add a derivative instrument to a joint venture, trust, or other investment structure, potentially affecting the value or risk profile of the arrangement. This clause provides flexibility for parties to manage their financial exposure or investment strategy, addressing the need for adaptable participation in complex financial structures.
Option to Contribute Derivative Instrument. At any time on or after the Closing Date, the Seller shall have the right to contribute to, and deposit into, the Trust a derivative contract or comparable instrument (a “Derivative Instrument”). The Derivative Instrument may have a notional amount in excess of the sum of the beneficial interests in the Trust. Any such instrument shall constitute a fully prepaid agreement. The Trust Administrator shall have no tax reporting duties with respect to any such Derivative Instrument.
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Option to Contribute Derivative Instrument. (a) At any time on or after the Closing Date, the Seller shall have the right to contribute to, and deposit into, the Trust a derivative contract or comparable instrument (a “Derivative Instrument”). The derivative may have a notional amount in excess of the sum of the beneficial interests in the trusts. Any such instrument shall constitute a fully prepaid agreement. All collections, proceeds and other amounts received by the Trust Administrator in respect of such instrument shall be distributed to the Class X Certificates on the Distribution Date following receipt thereof. In no event shall such an instrument constitute a part of any REMIC created hereunder. In addition, in the event any such instrument is deposited, the Trust shall be deemed to be divided into two separate and discrete sub-trusts. The assets of one such sub-trust shall consist of all the assets of the Trust other than the Derivative Instrument and the assets of the other sub-trust shall consist solely of such instrument. The Trust Administrator shall have no tax reporting duties with respect to any such Derivative Instrument or any related Sub-trust. (b) Notwithstanding paragraph (a) above, in the event of the conveyance by the Seller of the Class X Certificates to a trust established for the issuance of a series of NIMS Securities, the Seller shall no longer have the right to deposit a Derivative Instrument into the Trust. For purposes hereof, “NIMS Securities” are securities that evidence an interest in, or are secured by, distributions on the Class X Certificate.
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Option to Contribute Derivative Instrument. At any time on or after the Closing Date, the Seller shall have the right to contribute to, and deposit into, the Trust a derivative contract or comparable instrument (a “Derivative Instrument”). The derivative may have a notional amount in excess of the sum of the beneficial interests in the Trust. Any such instrument shall constitute a fully prepaid agreement. All collections, proceeds and other amounts in respect of such instrument shall be distributed to the Holder of the Residual Certificates on the Distribution Date following receipt thereof. In addition, in the event any such instrument is deposited, the Trust shall be deemed to be divided into two separate and discrete sub-trusts. The assets of one such sub-trust shall consist of all the assets of the Trust other than the Derivative Instrument and the assets of the other sub-trust shall consist solely of such instrument. No Derivative Instrument shall be an asset of any REMIC formed hereby.
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Related to Option to Contribute Derivative Instrument

  • Agreement to Continue in Force Both Parties shall adhere fully to the terms of this Agreement during the period of bona fide collective bargaining.

  • Commitment to Continuous Improvement (a) The Parties are committed to continuous improvement in the general building and construction industry and to the modernisation of the workplace. This includes the creation and adoption of policies that will provide better employment opportunities for women and mature age, Aboriginal and ▇▇▇▇▇▇ ▇▇▇▇▇▇ Islander people, returned soldiers, and other groups that have been excluded from opportunities in this industry. The Parties are also committed to supporting initiatives that will improve sustainable development and productivity across the industry. In accordance with provisions in this Agreement, the Parties will also seek broader industry wide actions to eliminate the existence of sham contracting. (b) The Parties may therefore seek to implement measures in the following categories: (i) employment opportunities; (ii) sustainability and productivity improvement; and (iii) eradication of sham contracting

  • No Obligation to Continue Business Relationship Neither the Plan, this agreement, nor the grant of this option imposes any obligation on the Company to continue the Optionee in employment or other Business Relationship.

  • Condition to Contract As a condition to this Agreement, Contractor shall execute the “Chapter 12B Declaration: Nondiscrimination in Contracts and Benefits” form (form HRC-12B-101) with supporting documentation and secure the approval of the form by the San Francisco Human Rights Commission.

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