Fallback Settlement Method definition
Examples of Fallback Settlement Method in a sentence
The Valuation Date shall be a Business Day selected by Buyer that is at least five (5) Business Days after the occurrence of an Auction Cancellation Date, a No Auction Announcement Date or such other date as referred to in Section 6.1 of the Credit Derivatives Definitions (as the case may be) upon which it is determined that the Fallback Settlement Method shall apply.
Fallback Settlement Method: Cash Settlement, provided however that Section 7.1 of the Credit Derivatives Definitions shall be amended (i) by the deletion of the words “Seller shall, subject to Section 5.1, pay to Buyer” and the insertion of the words “Buyer shall, subject to Section 5.1, pay to Seller” in the penultimate line thereof; and (ii) in lieu of the payment of any Cash Settlement Amount, the Buyer shall instead pay to the Seller an amount equal to the Adjusted Notional Amount.
If the Bank elects not to exercise its Movement Option, the Investments will be redeemed in accordance with the Fallback Settlement Method.
If the Additional Credit Terms specify that Physical Settlement is applicable or if a Fallback Settlement Event has occurred and Physical Settlement is the applicable Fallback Settlement Method, the Issuer will deliver Deliverable Obligations to the Noteholders of Credit Linked Notes in lieu of a cash payment.
If the Additional Credit Terms specify that Cash Settlement is applicable or if a Fallback Settlement Event has occurred and Cash Settlement is the applicable Fallback Settlement Method, then following the occurrence of a Credit Event and the delivery of a Credit Event Notice, the Calculation Agent will be required to seek quotations in respect of selected Valuation Obligations of the Reference Entity.