Template:Nutshell Credit Derivatives 4.6

Section 4.6 Repudiation/Moratorium.

(a) “Repudiation/Moratorium” means both of the following:

(i) an authorised officer of the Reference Entity or a Governmental Authority repudiates or imposes an effective moratorium on Obligations totalling at least the Default Requirement and

(ii) a Failure to Pay or Restructuring (ignoring any Payment Requirement or Default Requirement), occurs under any such Obligation by the Repudiation/Moratorium Evaluation Date.

(b) “Repudiation/Moratorium Evaluation Date” means, if a Potential Repudiation/Moratorium occurs by the Scheduled Termination Date:

(i) if the affected Obligations include Bonds, the later of (A) 60 days after the Potential Repudiation/Moratorium and (B) the first Bond payment date after the Potential Repudiation/Moratorium (or, if later, date any Grace Period expiry date) and

(ii) if they do not include Bonds, 60 days after the Potential Repudiation/Moratorium date;

provided that, unless the Repudiation/Moratorium Extension Condition is satisfied the Repudiation/Moratorium Evaluation Date must occur by the Scheduled Termination Date.

(c) “Potential Repudiation/Moratorium” means an event described in Section 4.6(a)(i).

(d) The “Repudiation/Moratorium Extension Condition” is satisfied if:

(i) the DC Secretary publicly announces, following a valid request received no later than fourteen calendar days after the Scheduled Termination Date, that the relevant Credit Derivatives Determinations Committee has Resolved that a Potential Repudiation/Moratorium occurred to an Obligation of the Reference Entity on or before the Scheduled Termination Date, or

(ii) the Notifying Party delivers a Repudiation/Moratorium Extension Notice and, if required, a Notice of Publicly Available Information each effective no later than fourteen calendar days after the Scheduled Termination Date.

In all cases, the Repudiation/Moratorium Extension Condition will be not be satisfied to the extent that, the DC Secretary publicly announces that the Credit Derivatives Determinations Committee has Resolved that either (A) the event is not a Potential Repudiation/Moratorium, or (B) it is, but it happened after the Scheduled Termination Date .

(e) “Repudiation/Moratorium Extension Notice” means an irrevocable notice from the Notifying Party describing a Potential Repudiation/Moratorium that occurred by the Scheduled Termination Date containing a reasonably detailed description of the Potential Repudiation/Moratorium has occurred and indicate the date of the occurrence. The Potential Repudiation/Moratorium that is the subject of the Repudiation/Moratorium Extension Notice need not be continuing on the date the Repudiation/Moratorium Extension Notice is effective. A form of Repudiation/Moratorium Extension Notice is set forth in Exhibit D.