Common use of Swap Transactions Clause in Contracts

Swap Transactions. 2.7.1 If, at any time during the Security Period, the Borrower wishes to enter into interest rate swap transactions so as to hedge all or any part of its exposure under this Agreement to interest rate fluctuations, they shall advise the Swap Bank in writing and provide the Swap Bank with a right of first refusal with respect to such interest rate swap transactions (i.e. the Swap Bank shall be given the opportunity to match the terms for such interest rate swap transactions, offered by any other banks or financial institutions). 2.7.2 Any swap transaction may be concluded with the Swap Bank under the Master Swap Agreement. For the avoidance of doubt, other than the Swap Bank’s agreement to enter into a Transaction no prior approval is required by the Borrower from all or any of the other Creditors before concluding any swap transaction. If and when any such Transaction has been concluded, the Borrower shall sign a Confirmation with the Swap Bank and advise the Lenders through the Facility Agent promptly after concluding any Transaction. 2.7.3 Within 364 days of the date of this Agreement the Borrower and the Lenders shall decide whether, consistent with the Parent’s overall hedging strategy for the Golar LNG Group (as agreed with the Facility Agent within such 364 day period), any interest rate swap transactions shall be entered into in order to appropriately hedge 50% of the Borrower’s interest obligations under this Agreement.