Template:Nutshell Credit Derivatives 3.31

Section 3.31 Section 3.31. Mod R.

(a) If

(i) “Physical Settlement” is the Settlement Method or Fallback Settlement Method,

(ii) “Mod R” applies and

(iii) only Restructuring is specified in a Credit Event Notice delivered by Buyer,

then unless the Deliverable Obligation is a Prior Deliverable Obligation and Asset Package Delivery applies due to a Governmental Intervention, a Deliverable Obligation may only be specified in the Notice of Physical Settlement or NOPS Amendment Notice if it

(A) is a Fully Transferable Obligation and

(B) has a final maturity date not later than the applicable Restructuring Maturity Limitation Date, in each case, as of both the NOPS Effective Date and the Delivery Date.

(b) “Fully Transferable Obligation” means a Deliverable Obligation that is either Transferable, in the case of Bonds, or can be novated to all Eligible Transferees without consent, in the case of any non-Bond Deliverable Obligations as of both the NOPS Effective Date and the Delivery Date. Any requirement transfer of a Deliverable Obligation be notified to a trustee or agent for a Deliverable Obligation is not a “requirement for consent” under Section 3.31.

(c) a Deliverable Obligation’s “Restructuring Maturity Limitation Date” is the first Limitation Date occurring on or after its Scheduled Termination Date. If the final maturity date of the last-to-mature Restructured Bond or Loan occurs before the 2.5-year Limitation Date (a “Latest Maturity Restructured Bond or Loan”) and the Scheduled Termination Date occurs before the Latest Maturity Restructured Bond or Loan’s final maturity date then the Restructuring Maturity Limitation Date will be the Latest Maturity Restructured Bond or Loan’s final maturity date.

(d) “Eligible Transferee” means:

(i) any financial institution, insurer, fund or broker dealer having total assets of at least USD 500,000,000 (or an an Affiliate of such an entity) specified in Section 3.31(d)(i);

(ii) an investment vehicle (or group under common management) having total assets of at least USD 100,000,000 or

(iii) any entity that has total assets of at least USD 500,000,000 or whose obligations are guaranteed or otherwise supported by any of the entities described above; or

(iv) any Sovereign; or supranational.

All references to USD include equivalent amounts in other currencies.