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| '''Section {{cddprov|3.32}}. {{cddprov|Mod Mod R}}'''.<br>
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| :(a) If
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| ::(i) the {{cddprov|Settlement Method}} or {{cddprov|Fallback Settlement Method}} is “'''{{cddprov|Physical Settlement}}'''”,
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| ::(ii) “'''{{cddprov|Mod Mod R}}'''” applies and
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| ::(iii) only {{cddprov|Restructuring}} is specified in a {{cddprov|Credit Event Notice}} delivered by {{cddprov|Buyer}},
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| ::then unless the {{cddprov|Deliverable Obligation}} is a {{cddprov|Prior Deliverable Obligation}} and {{cddprov|Asset Package Delivery}} applies due to a {{cddprov|Governmental Intervention}},
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| ::a {{cddprov|Deliverable Obligation}} may only be specified in the {{cddprov|Notice of Physical Settlement}} or {{cddprov|NOPS Amendment Notice}}, if it
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| ::(A) is a {{cddprov|Conditionally Transferable Obligation}} and
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| ::(B) has a final maturity date not later than the applicable {{cddprov|Modified Restructuring Maturity Limitation Date}}, in each case, as of both the {{cddprov|NOPS Effective Date}} and the {{cddprov|Delivery Date}}.
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| ::A {{cddprov|Restructured Bond or Loan}} whose revised final maturity date falls by the 10 year {{cddprov|Limitation Date}}, its final maturity date will be treated for the purposes of Section {{cddprov|3.32}}(a) as the earlier of the revised date and its prevailing final maturity date before the {{cddprov|Restructuring}}.<br>
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| :(b) “'''{{cddprov|Conditionally Transferable Obligation}}'''” means a {{cddprov|Deliverable Obligation}} that is a {{cddprov|Transferable}} {{cddprov|Bond}} or is otherwise able to be transferred to all {{cddprov|Modified Eligible Transferee}}s without consent, as of the {{cddprov|NOPS Effective Date}} and the {{cddprov|Delivery Date}}, provided, however, that a non-{{cddprov|Bond}} {{cddprov|Deliverable Obligation}} will be a {{cddprov|Conditionally Transferable Obligation}} even though consent of the {{cddprov|Reference Entity}} or any relevant guarantor is required but may not be unreasonably withheld or delayed. Any requirement that notification of transfer be provided to a trustee or agent for a {{cddprov|Deliverable Obligation}} is not a “requirement for consent” under Section {{cddprov|3.32}}(b).<br>
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| :(c) If Section {{cddprov|3.32}}(a) applies, the {{cddprov|Deliverable Obligation}} is a {{cddprov|Conditionally Transferable Obligation}} requiring consent to transfer and consent is refused or not received by the {{cddprov|Physical Settlement Date}}, {{cddprov|Buyer}} must promptly notify {{cddprov|Seller}} of the refusal and:<br>
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| ::(i) Section {{cddprov|11.2}}(c)(iv) ({{cddprov|Additional Representations and Agreements for Physical Settlement}}) will apply to {{cddprov|Seller}} as the designator, (though the designee need not be an {{cddprov|Affiliate}} of {{cddprov|Seller}}); and<br>
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| ::(ii) if {{cddprov|Seller}} does not designate a third party to take {{cddprov|Delivery}} by the {{cddprov|Loan Alternative Procedure Start Date}}, then Section {{cddprov|9.8}} ({{cddprov|Alternative Procedures Relating to Loans Not Delivered}}) will apply.<br>
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| :(d) “'''{{cddprov|Modified Restructuring Maturity Limitation Date}}'''” means, with respect to a {{cddprov|Deliverable Obligation}}, the {{cddprov|Limitation Date}} occurring on or immediately following the {{cddprov|Scheduled Termination Date}}.<br>
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| :If the {{cddprov|Scheduled Termination Date}} is later than the 10-year {{cddprov|Limitation Date}}, the {{cddprov|Modified Restructuring Maturity Limitation Date}} will be the {{cddprov|Scheduled Termination Date}}.<br>
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| :(e) “'''{{cddprov|Modified Eligible Transferee}}'''” means any entity, like a bank, that is regularly engaged in making, purchasing or investing in financial assets.<br>
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