Underlying Asset Clause Samples
The 'Underlying Asset' clause defines the specific asset or group of assets upon which a financial contract, such as a derivative or structured product, is based. This clause typically identifies the asset by name, type, or other distinguishing characteristics, ensuring all parties are clear about what the contract references—examples include a particular stock, commodity, index, or currency. By clearly specifying the underlying asset, the clause eliminates ambiguity and ensures that the rights and obligations of the parties are tied to a well-defined reference, thereby reducing the risk of disputes.
Underlying Asset. An Underlying Asset is a term used in derivatives trading. A derivative is a financial instrument with a price that is based on (that is, derived from) a different Asset. The Underlying Asset is the financial instrument (such as stock, futures, a commodity, a currency or an index) on which a derivative's price is based. A stock dividend is a dividend payment made in the form of additional shares rather than a cash payout. Stock split is a decision by a company's board of directors to increase the number of shares that are outstanding by issuing more shares to current shareholders. Reverse stock split is usually used by companies with low share prices that would like to increase these prices to either gain more respectability in the market or to prevent the company from being delisted or taken over by another company.
Underlying Asset. An Underlying Asset is a term used in derivatives trading. A derivative is a financial instrument with a price that is based on (that is, derived from) a different Asset. The Underlying Asset is the financial instrument (such as stock, futures, a commodity, a currency or an index) on which a derivative's price is based.
Underlying Asset. Each “Collateral Obligation” (as defined in the Security Indenture) that is owned by the Security Issuer from time to time 24
Underlying Asset. Any security, commodity, instrument, or transaction on forward financial instruments or Transaction to which a Transaction relates.
Underlying Asset. If the Mortgage Loan is an Agency Eligible Mortgage Loan and is subject to a property inspection waiver, the property valuation was the subject of a duly issued appraisal waiver offer that was not more than four months old as of the date of the Mortgage Note and Mortgage.
Underlying Asset. It refers to any Financial Asset subject to the derivative agreement.
Underlying Asset. The CME Group Light Sweet Crude Oil (WTI) Futures Contract.