Template:Nutshell Credit Derivatives 3.32

Section 3.32. Mod Mod R.

(a) If

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

(ii) “Mod 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 Conditionally Transferable Obligation and

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

A Restructured Bond or Loan whose revised final maturity date falls by the 10 year Limitation Date, its final maturity date will be treated for the purposes of Section 3.32(a) as the earlier of the revised date and its prevailing final maturity date before the Restructuring.

(b) “Conditionally Transferable Obligation” means a Deliverable Obligation that is a Transferable Bond or is otherwise able to be transferred to all Modified Eligible Transferees without consent, as of the NOPS Effective Date and the Delivery Date, provided, however, that a non-Bond Deliverable Obligation will be a Conditionally Transferable Obligation even though consent of the 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 Deliverable Obligation is not a “requirement for consent” under Section 3.32(b).

(c) If Section 3.32(a) applies, the Deliverable Obligation is a Conditionally Transferable Obligation requiring consent to transfer and consent is refused or not received by the Physical Settlement Date, Buyer must promptly notify Seller of the refusal and:

(i) Section 11.2(c)(iv) (Additional Representations and Agreements for Physical Settlement) will apply to Seller as the designator, (though the designee need not be an Affiliate of Seller); and

(ii) if Seller does not designate a third party to take Delivery by the Loan Alternative Procedure Start Date, then Section 9.8 (Alternative Procedures Relating to Loans Not Delivered) will apply.

(d) “Modified Restructuring Maturity Limitation Date” means, with respect to a Deliverable Obligation, the Limitation Date occurring on or immediately following the Scheduled Termination Date.

If the Scheduled Termination Date is later than the 10-year Limitation Date, the Modified Restructuring Maturity Limitation Date will be the Scheduled Termination Date.

(e) “Modified Eligible Transferee” means any entity, like a bank, that is regularly engaged in making, purchasing or investing in financial assets.