Replacement of Loaned Securities. If NFS declares a Default Event, then, as soon as reasonably practicable, and within a commercially reasonable period of time, NFS shall use the Collateral or the proceeds of the liquidation of Collateral to purchase for the affected Fund’s account, for settlement in the normal course, replacement securities of the same issue, type, class and series as that of the loaned securities (each such purchase a “Buy-In”). NFS shall conduct a Buy-In of an amount of replacement securities having a value equal to the value of the securities on loan for which a Default Event has been declared. If the cost of fully replacing the loaned securities is greater than the value of the Collateral (or liquidated damages calculated under Section 6.2), NFS shall be responsible for using its funds, at its expense, to satisfy the shortfall, but only to the extent that such shortfall is not due to any diminution in the value of the Collateral due to reinvestment risk that is borne by the Fund pursuant to Section 5. For purposes of this Section 6, the value of the Collateral shall be calculated as follows:
Appears in 3 contracts
Sources: Securities Lending Agency Agreement (Fidelity Rutland Square Trust II), Securities Lending Agency Agreement (Fidelity Cherry Street Trust), Securities Lending Agency Agreement (Fidelity Devonshire Trust)
Replacement of Loaned Securities. If NFS declares an Approved Borrower fails, pursuant to the SLA with QA LLC, to return loaned securities with respect to a loan when due ("Default Event"), then, as soon as reasonably practicable, and within a commercially reasonable period of time, NFS then QA LLC shall use the Collateral or the proceeds of the liquidation of Collateral to purchase for the affected Fund’s 's account, for settlement in the normal course, replacement securities of the same issue, type, class and series as that of the loaned securities (each such purchase a “"Buy-In”"). NFS QA LLC shall conduct a Buy-In of purchase an amount of replacement securities having a value equal to the value of the securities on loan for which a Default Event has been declaredCollateral (as determined herein). If the cost of fully replacing the loaned securities is greater than the value of the Collateral (or liquidated damages calculated under Section 6.2), NFS QA LLC shall be responsible for using its funds, at its expense, to satisfy the shortfall, but only to the extent that such shortfall is not due to any diminution in the value of the Collateral due to reinvestment risk that is borne by the Fund pursuant to Section 55 of this Agreement. For purposes of this Section 6Section, the value of the Collateral shall be calculated as follows:
Appears in 1 contract
Sources: Securities Lending Agency Agreement (Merrill Lynch Global Technology Fund Inc)