Common use of Termination of the Guarantee Clause in Contracts

Termination of the Guarantee. 16.1 If an improvement of the market conditions renders the Guarantee mechanism unnecessary, or if one of the provisions of the present Agreement is not respected by a Guaranteed Entity and/or Dexia, each State reserves the right to terminate this Agreement, without prejudice to acquired rights. Such termination must be the subject of prior consultation and, unless agreed otherwise between the States, be subject to a prior notice of one month. The markets shall be notified of such termination. 16.2 The termination of this Agreement by only one of the States shall have the effect that the Contracts, Securities and/or Financial Instruments referred to in Article 3 entered into, issued, or deemed entered into or issued pursuant to Article 6.1 or Article 8.1, by all the Guaranteed Entities as of the day after the Day of the termination, including Contracts, Securities and Financial Instruments without fixed maturity, shall not or no longer benefit from the Guarantee. The termination of the Guarantee may in no case have a retroactive effect and may not therefore rescind the Guarantee benefiting Contracts, Securities or Financial Instruments covered by the Guarantee until their maturity. The States not wishing to terminate the Guarantee may nonetheless decide to maintain their Guarantee for all or some of the Guaranteed Entities or Guaranteed Obligations.

Termination of the Guarantee. 16.1 17.1 If an improvement of the market conditions renders the Guarantee mechanism unnecessary, or if one of the provisions of the present Agreement is not respected by a Guaranteed Entity and/or Dexia, each State reserves the right to terminate this Agreement, without prejudice to acquired rights. Such termination must be the subject of prior consultation and, unless agreed otherwise between the States, be subject to a prior notice of one month. The markets shall be notified of such termination. 16.2 17.2 The termination of this Agreement by only one of the States shall have the effect that the Contracts, Securities and/or Financial Instruments referred to in Article 3 entered into, issued, or deemed entered into or issued pursuant to Article 6.1 or Article 8.1, by all the Guaranteed Entities as of the day after the Day of the termination, including Contracts, Securities and Financial Instruments without fixed maturity, shall not or no longer benefit from the Guarantee. The termination of the Guarantee may in no case have a retroactive effect and may not therefore rescind the Guarantee benefiting Contracts, Securities or Financial Instruments covered by the Guarantee until their maturity. The States not wishing to terminate the Guarantee may nonetheless decide to maintain their Guarantee for all or some of the Guaranteed Entities or Guaranteed Obligations.