Common use of Rating Downgrade Clause in Contracts

Rating Downgrade. (i) Moody's: If, during the term of any Offshore Notes rated Aaa (Moody's) issued by Party B, the credit rating assigned to Party A's senior debt is lower than the relevant Prescribed Rating, and such downgrade would except for this clause adversely affect the rating of the Offshore Notes, then Party A must on request by the Global Trust Manager lodge sufficient cash or other collateral (if any) as may be necessary to maintain the credit rating of those Offshore Notes at the rating that was applicable to those Offshore Notes immediately prior to the downgrade. This collateral must be deposited into a bank account ("Collateral Account") with an Eligible Bank. The Collateral Account must be in the name of Party B and must bear interest at a commercial rate payable monthly. Interest earned on the money credited to the Collateral Account must be paid directly to Party A. If Party A is an eligible entity as at the date of lodgement, the collateral must be lodged with Party A (in an account in the name of Party B) and remain with Party A for so long as it continues to be an eligible entity. Any collateral lodged under this paragraph is subject to the terms of the Credit Support Annex to this Agreement.

Rating Downgrade. (i) Moody's: If, during the term of any Offshore Notes rated Aaa (Moody's) issued by Party B, the credit rating assigned to Party A's senior debt is lower than the relevant Prescribed Rating, and such downgrade would except for this clause adversely affect the rating of the Offshore Notes, then Party A must on request by the Global Trust Manager lodge sufficient cash or other collateral (if any) as may be necessary to maintain the credit rating of those Offshore Notes at the rating that was applicable to those Offshore Notes immediately prior to the downgrade. This collateral must be deposited into a bank account ("Collateral Account") lodged with an Eligible Bank. The Collateral Account must be in the name of Party B Bank and must bear any interest at a commercial rate payable monthly. Interest earned on the money credited to the Collateral Account must be paid directly it is payable to Party A. If Party A is an eligible entity as at the date of lodgement, the collateral must be lodged with Party A (in an account in the name of Party B) and remain with Party A for so long as it continues to be an eligible entity. Any If collateral is lodged under this paragraph the parties must execute an amending agreement incorporating into this Agreement the 1995 ISDA Credit Support Annex (Bilateral Form - Transfer), and until executed the 1995 ISDA Credit Support Annex will be taken to supplement and form part of this Agreement, and any collateral lodged under this paragraph is subject to the terms of its terms, as if the Credit Support Annex were incorporated into this Agreement (but without any Paragraph 11 other than as necessary to give effect to the obligations described in this AgreementPart 5(24)(i)) prior to the lodgement of any such collateral.