Substitutions of Collateral Clause Samples
The Substitutions of Collateral clause allows a party to replace existing collateral with new collateral of equivalent value, subject to the agreement's terms. In practice, this means that if a borrower has pledged certain assets as security, they may request to substitute those assets with others, provided the new collateral meets the required standards and is approved by the secured party. This clause provides flexibility for the party posting collateral, enabling them to manage their assets more efficiently while ensuring the secured party remains protected against credit risk.
Substitutions of Collateral. Borrower may from time to time call for the repayment of Cash Collateral or the redelivery of Collateral equivalent to any Collateral delivered to Lender prior to the date on which the same would otherwise have been repayable or redeliverable provided that at the time of such repayment or redelivery Borrower shall have delivered or delivers Alternative Collateral acceptable to Lender and Borrower is in compliance with paragraph 5.4 or paragraph 5.5, as applicable.
Substitutions of Collateral. In the event Member requests such in writing, the Bank shall release to Member any of the Collateral upon receipt of other Collateral in substitution thereof on written authorization received from the Depositor. When substitution is made, the Bank shall make a receipt describing both the Collateral substituted and the Collateral released available to Member, with a copy to Depositor. Upon such substitution, all rights and obligations of Member and the Bank and Depositor under the Custodial Agreement and Confirm, including the grant of a security interest in such Collateral in favor of Depositor as set forth in the Custodial Agreement and Confirm, shall automatically apply to all substituted Collateral.
Substitutions of Collateral. Borrower may, within the Borrowing Period, withdraw the Collateral equivalent to any Collateral delivered by providing written notice to Lender in accordance with the following periods: (a) if Collateral is in the form of Cash Collateral or Letters of Credit, at least one (1) day prior to the intended date of withdrawal, or
Substitutions of Collateral. Borrower may from time to time call for the repayment of Cash Collateral or the redelivery of Collateral equivalent to any Collateral delivered to Lender prior to the date on which the same would otherwise have been repayable or redeliverable provided that at the time of such repayment or redelivery Borrower shall have delivered or delivers Alternative Collateral acceptable to Lender and Borrower is in compliance with paragraph 0 or paragraph 5.5, as applicable. Unless otherwise agreed between the Parties:- ■ the aggregate Market Value of the Collateral delivered to or deposited with Lender (excluding any Equivalent Collateral repaid or redelivered under Paragraphs 5.4(ii) or 5.5(ii) (as the case may be)) (“Posted Collateral”) in respect of all Loans outstanding under this Agreement shall equal the aggregate of the Market Value of the Loaned Securities and the applicable Margin (the “Required Collateral Value”) in respect of such Loans; ■ if at any time on any Business Day the aggregate Market Value of the Posted Collateral in respect of all Loans outstanding under this Agreement exceeds the aggregate of the Required Collateral Values in respect of such Loans, Lender shall (on demand) repay and/or redeliver, as the case may be, to Borrower such Equivalent Collateral as will eliminate the excess; ■ if at any time on any Business Day the aggregate Market Value of the Posted Collateral in respect of all Loans outstanding under this Agreement falls below the aggregate of Required Collateral Values in respect of all such Loans, Borrower shall (on demand) provide such further Collateral to Lender as will eliminate the deficiency. The Posted Collateral in respect of any Loan shall bear from day to day and at any time the same pro- portion to the Market Value of the Loaned Securities as the Posted Collateral bore at the commencement of such Loan. Accordingly: ■ the Market Value of the Posted Collateral to be delivered or deposited while the Loan continues shall be equal to the Required Collateral Value; ■ if at any time on any Business Day the Market Value of the Posted Collateral in respect of any Loan exceeds the Required Collateral Value in respect of such Loan, Lender shall (on demand) repay and/or redeliver, as the case may be, to Borrower such Equivalent Collateral as will eliminate the excess; and ■ if at any time on any Business Day the Market Value of the Posted Collateral falls below the Required Collateral Value, Borrower shall (on demand) provide such ...
Substitutions of Collateral. Conditions to Initial Issuance of Notes.......................................... 25 Section 4.02 Issuances of Additional Series of Notes.......................................... 26 Section 4.03
Substitutions of Collateral. Conditions to Initial Issuance of Certificates. Each Series of Certificates to be issued on the Initial Delivery Date shall be executed by the Transferor and delivered to the Trustee for authentication, and thereupon, the same shall be authenticated and delivered by the Trustee upon Transferor Order and upon receipt by the Trustee of the following: