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2016 ISDA VM NY CSA (view source)

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(Bilateral Form) (ISDA Agreements Subject to New York Law Only)<br>
{{ISDA New York Law Credit Support Annex 2016 preamble}}
<br>
International Swaps and Derivatives Association, Inc.<br>
2016 CREDIT SUPPORT ANNEX FOR VARIATION MARGIN (VM)<br>
dated as of <br>
to the Schedule to the<br>
<br>
dated as of <br>
<br>
This Annex supplements, forms part of, and is subject to, the above-referenced Agreement, is part of its Schedule and is a {{isdaprov|Credit Support Document}} under this Agreement with respect to each party.<br>
Accordingly, the parties agree as follows:—<br>
 
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{{ISDA New York Law Credit Support Annex 2016 12}}
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{{ISDA New York Law Credit Support Annex 2016 13}}
{{ISDA New York Law Credit Support Annex 2016 13}}
 
__NOTOC__
===Paragraph {{nyvmcsaprov|8}} '''{{nyvmcsaprov|Certain Rights and Remedies}}'''===
{{nyvmcsaprov|8(a)}} '''{{nyvmcsaprov|Secured Party’s Rights and Remedies}}'''. If at any time (1) an {{isdaprov|Event of Default}} or {{nyvmcsaprov|Specified Condition}} with respect to the {{nyvmcsaprov|Pledgor}} has occurred and is continuing or (2) an {{isdaprov|Early Termination Date}} has occurred or been designated as the result of an {{isdaprov|Event of Default}} or {{nyvmcsaprov|Specified Condition}} with respect to the {{nyvmcsaprov|Pledgor}}, then, unless the {{nyvmcsaprov|Pledgor}} has paid in full all of its {{isdaprov|Obligations}} that are then due, the {{nyvmcsaprov|Secured Party}} may exercise one or more of the following rights and remedies:<br>
:{{nyvmcsaprov|8(a)(i)}} all rights and remedies available to a {{nyvmcsaprov|Secured Party}} under applicable law with respect to {{nyvmcsaprov|Posted Collateral (VM)}} held by the {{nyvmcsaprov|Secured Party}};<br>
:{{nyvmcsaprov|8(a)(ii)}} any other rights and remedies available to the {{nyvmcsaprov|Secured Party}} under the terms of {{nyvmcsaprov|Other Posted Support (VM)}}, if any;<br>
:{{nyvmcsaprov|8(a)(iii)}} the right to {{nyvmcsaprov|Set-off}} (A) any amounts payable by the {{nyvmcsaprov|Pledgor}} with respect to any {{isdaprov|Obligations}} and (B) any {{nyvmcsaprov|Cash}} amounts and the {{nyvmcsaprov|Cash}} equivalent of any non-{{nyvmcsaprov|Cash}} items posted to the {{nyvmcsaprov|Pledgor}} by the {{nyvmcsaprov|Secured Party}} as margin under any {{nyvmcsaprov|Other CSA}} (other than any {{nyvmcsaprov|Other CSA Excluded Credit Support}}) the return of which is due to the {{nyvmcsaprov|Secured Party}} against any {{nyvmcsaprov|Posted Collateral (VM)}} or the {{nyvmcsaprov|Cash}} equivalent of any {{nyvmcsaprov|Posted Collateral (VM)}} held by the {{nyvmcsaprov|Secured Party}} (or any obligation of the {{nyvmcsaprov|Secured Party}} to {{nyvmcsaprov|Transfer}} that {{nyvmcsaprov|Posted Collateral (VM)}}); and<br>
:{{nyvmcsaprov|8(a)(iv)}} the right to liquidate any {{nyvmcsaprov|Posted Collateral (VM)}} held by the {{nyvmcsaprov|Secured Party}} through one or more public or private sales or other dispositions with such notice, if any, as may be required under applicable law, free from any claim or right of any nature whatsoever of the {{nyvmcsaprov|Pledgor}}, including any equity or right of redemption by the {{nyvmcsaprov|Pledgor}} (with the {{nyvmcsaprov|Secured Party}} having the right to purchase any or all of the {{nyvmcsaprov|Posted Collateral (VM)}} to be sold) and to apply the proceeds (or the {{nyvmcsaprov|Cash}} equivalent thereof) from the liquidation of the {{nyvmcsaprov|Posted Collateral (VM)}} to (A) any amounts payable by the {{nyvmcsaprov|Pledgor}} with respect to any {{isdaprov|Obligations}} and (B) any {{nyvmcsaprov|Cash}} amounts and the {{nyvmcsaprov|Cash}} equivalent of any non-{{nyvmcsaprov|Cash}} items posted to the {{nyvmcsaprov|Pledgor}} by the {{nyvmcsaprov|Secured Party}} as margin under any {{nyvmcsaprov|Other CSA}} (other than any {{nyvmcsaprov|Other CSA Excluded Credit Support}}) the return of which is due to the {{nyvmcsaprov|Secured Party}} in that order as the {{nyvmcsaprov|Secured Party}} may elect.<br>
Each party acknowledges and agrees that {{nyvmcsaprov|Posted Collateral (VM)}} in the form of securities may decline speedily in {{nyvmcsaprov|Value}} and is of a type customarily sold on a recognized market, and, accordingly, the {{nyvmcsaprov|Pledgor}} is not entitled to prior notice of any sale of that {{nyvmcsaprov|Posted Collateral (VM)}} by the {{nyvmcsaprov|Secured Party}}, except any notice that is required under applicable law and cannot be waived.<br>
{{nyvmcsaprov|8(b)}} '''{{nyvmcsaprov|Pledgor’s Rights and Remedies}}'''. If at any time an {{isdaprov|Early Termination Date}} has occurred or been designated as the result of an {{isdaprov|Event of Default}} or {{nyvmcsaprov|Specified Condition}} with respect to the {{nyvmcsaprov|Secured Party}}, then (except in the case of an {{isdaprov|Early Termination Date}} relating to fewer than all {{isdaprov|Transaction}}s where the {{nyvmcsaprov|Secured Party}} has paid in full all of its obligations that are then due under Section 6(e) of this Agreement):<br>
:{{nyvmcsaprov|8(b)(i)}} the {{nyvmcsaprov|Pledgor}} may exercise all rights and remedies available to a {{nyvmcsaprov|Pledgor}} under applicable law with respect to {{nyvmcsaprov|Posted Collateral (VM)}} held by the {{nyvmcsaprov|Secured Party}};<br>
:{{nyvmcsaprov|8(b)(ii)}} the {{nyvmcsaprov|Pledgor}} may exercise any other rights and remedies available to the {{nyvmcsaprov|Pledgor}} under the terms of {{nyvmcsaprov|Other Posted Support (VM)}}, if any;<br>
:{{nyvmcsaprov|8(b)(iii)}} the {{nyvmcsaprov|Secured Party}} will be obligated immediately to {{nyvmcsaprov|Transfer}} all {{nyvmcsaprov|Posted Collateral (VM)}} and, if the {{nyvmcsaprov|Secured Party}} is an {{nyvmcsaprov|Interest Payer (VM)}}, the {{nyvmcsaprov|Interest Payment (VM)}} to the {{nyvmcsaprov|Pledgor}}; and<br>
:{{nyvmcsaprov|8(b)(iv)}} to the extent that {{nyvmcsaprov|Posted Collateral (VM)}} or the {{nyvmcsaprov|Interest Payment (VM)}} is not so {{nyvmcsaprov|Transfer}}red pursuant to<br>
:{{nyvmcsaprov|8(b)(v)}} above, the {{nyvmcsaprov|Pledgor}} may:<br>
::{{nyvmcsaprov|8(b)(v)(A)}} {{nyvmcsaprov|Set-off}} any amounts payable by the {{nyvmcsaprov|Pledgor}} with respect to any {{isdaprov|Obligations}} against any {{nyvmcsaprov|Posted Collateral (VM)}} or the {{nyvmcsaprov|Cash}} equivalent of any {{nyvmcsaprov|Posted Collateral (VM)}} held by the {{nyvmcsaprov|Secured Party}} (or any obligation of the {{nyvmcsaprov|Secured Party}} to {{nyvmcsaprov|Transfer}} that {{nyvmcsaprov|Posted Collateral (VM)}});<br>
::{{nyvmcsaprov|8(b)(v)(B)}} {{nyvmcsaprov|Set-off}}, net, or apply credit support received under any {{nyvmcsaprov|Other CSA}} or the proceeds thereof against any {{nyvmcsaprov|Posted Collateral (VM)}} or the {{nyvmcsaprov|Cash}} equivalent of any {{nyvmcsaprov|Posted Collateral (VM)}} held by the {{nyvmcsaprov|Secured Party}} (or any obligation of the {{nyvmcsaprov|Secured Party}} to {{nyvmcsaprov|Transfer}} that {{nyvmcsaprov|Posted Collateral (VM)}}); and<br>
::{{nyvmcsaprov|8(b)(v)(C)}} to the extent that the {{nyvmcsaprov|Pledgor}} does not {{nyvmcsaprov|Set-off}} under (iv)(A) or (iv)(B) above, withhold payment of any remaining amounts payable by the {{nyvmcsaprov|Pledgor}} with respect to any {{isdaprov|Obligations}}, up to the {{nyvmcsaprov|Value}} of any remaining {{nyvmcsaprov|Posted Collateral (VM)}} held by the Secured Party, until that {{nyvmcsaprov|Posted Collateral (VM)}} is {{nyvmcsaprov|Transfer}}red to the {{nyvmcsaprov|Pledgor}}.<br>
{{nyvmcsaprov|8(c)}} '''{{nyvmcsaprov|Deficiencies and Excess Proceeds}}'''. The {{nyvmcsaprov|Secured Party}} will {{nyvmcsaprov|Transfer}} to the {{nyvmcsaprov|Pledgor}} any proceeds and {{nyvmcsaprov|Posted Credit Support (VM)}} remaining after liquidation, {{nyvmcsaprov|Set-off}} and/or application under Paragraphs {{nyvmcsaprov|8(a)}} and {{nyvmcsaprov|8(b)}} after satisfaction in full of all amounts payable by the {{nyvmcsaprov|Pledgor}} with respect to any {{isdaprov|Obligations}}; and the {{nyvmcsaprov|Pledgor}} in all events will remain liable for any amounts remaining unpaid after any liquidation, {{nyvmcsaprov|Set-off}} and/or application under {{nyvmcsaprov|8(a)}} and {{nyvmcsaprov|8(b)}.<br>
{{nyvmcsaprov|8(d)}} '''{{nyvmcsaprov|Final Returns}}'''. When no amounts are or thereafter may become payable by the {{nyvmcsaprov|Pledgor}} with respect to any {{isdaprov|Obligations}} (except for any potential liability under Section {{isdaprov|2(d)}} of this Agreement, any obligation to {{nyvmcsaprov|Transfer}} any {{nyvmcsaprov|Interest Payment (VM)}} under this Paragraph {{nyvmcsaprov|8(d)}} or any obligation to {{nyvmcsaprov|Transfer}} any interest payment under any {{nyvmcsaprov|Other CSA}}), (i) the {{nyvmcsaprov|Secured Party}} will {{nyvmcsaprov|Transfer}} to the {{nyvmcsaprov|Pledgor}} all {{nyvmcsaprov|Posted Credit Support (VM)}}, and (ii) the {{nyvmcsaprov|Interest Payer (VM)}} will {{nyvmcsaprov|Transfer}} to the {{nyvmcsaprov|Interest Payee (VM)}} any {{nyvmcsaprov|Interest Payment (VM)}}.<br>
 
===Paragraph {{nyvmcsaprov|9}} '''{{nyvmcsaprov|Representations)}}'''===
Each party represents to the other party (which representations will be deemed to be repeated as of each date on which it, as the {{nyvmcsaprov|Pledgor}}, {{nyvmcsaprov|Transfer}}s {{nyvmcsaprov|Eligible Collateral (VM)}}) that:<br>
:{{nyvmcsaprov|9(i)}} it has the power to grant a security interest in and lien on any {{nyvmcsaprov|Eligible Collateral (VM)}} it {{nyvmcsaprov|Transfer}}s as the {{nyvmcsaprov|Pledgor}} and has taken all necessary actions to authorize the granting of that security interest and lien;<br>
:{{nyvmcsaprov|9(ii)}} it is the sole owner of or otherwise has the right to {{nyvmcsaprov|Transfer}} all {{nyvmcsaprov|Eligible Collateral (VM)}} it {{nyvmcsaprov|Transfer}}s to the {{nyvmcsaprov|Secured Party}} hereunder, free and clear of any security interest, lien, encumbrance or other restrictions other than the security interest and lien granted under Paragraph 2;<br>
:{{nyvmcsaprov|9(iii)}} upon the {{nyvmcsaprov|Transfer}} of any {{nyvmcsaprov|Eligible Collateral (VM)}} to the {{nyvmcsaprov|Secured Party}} under the terms of this Annex, the {{nyvmcsaprov|Secured Party}} will have a valid and perfected first priority security interest therein (assuming that any central clearing corporation or any third-party financial intermediary or other entity not within the control of the {{nyvmcsaprov|Pledgor}} involved in the {{nyvmcsaprov|Transfer}} of that {{nyvmcsaprov|Eligible Collateral (VM)}} gives the notices and takes the action required of it under applicable law for perfection of that interest); and<br>
:{{nyvmcsaprov|9(iv)}} the performance by it of its obligations under this Annex will not result in the creation of any security interest, lien or other encumbrance on any {{nyvmcsaprov|Posted Collateral (VM)}} other than the security interest and lien granted under Paragraph 2.<br>
 
===Paragraph {{nyvmcsaprov|10}} '''{{nyvmcsaprov|Expenses)}}'''===
{{nyvmcsaprov|10(a)}} '''General'''. Except as otherwise provided in Paragraphs 10(b) and 10(c), each party will pay its own costs and expenses in connection with performing its obligations under this Annex and neither party will be liable for any costs and expenses incurred by the other party in connection herewith.<br>
{{nyvmcsaprov|10(b)}} '''{{nyvmcsaprov|Posted Credit Support (VM)}}'''. The {{nyvmcsaprov|Pledgor}} will promptly pay when due all taxes, assessments or charges of any nature that are imposed with respect to {{nyvmcsaprov|Posted Credit Support (VM)}} held by the {{nyvmcsaprov|Secured Party}} upon becoming aware of the same, regardless of whether any portion of that {{nyvmcsaprov|Posted Credit Support (VM)}} is subsequently disposed of under Paragraph 6(c), except for those taxes, assessments and charges that result from the exercise of the {{nyvmcsaprov|Secured Party}}’s rights under Paragraph 6(c).<br>
{{nyvmcsaprov|10(c)}} '''{{nyvmcsaprov|Liquidation/Application of Posted Credit Support (VM)}}'''. All reasonable costs and expenses incurred by or on behalf of the {{nyvmcsaprov|Secured Party}} or the {{nyvmcsaprov|Pledgor}} in connection with the liquidation and/or application of any {{nyvmcsaprov|Posted Credit Support (VM)}} under Paragraph {{nyvmcsaprov|8}} will be payable, on demand and pursuant to the '''{{nyvmcsaprov|Expenses)}}''' Section of this Agreement, by the {{isdaprov|Defaulting Party}} or, if there is no {{isdaprov|Defaulting Party}}, equally by the parties.<br>
 
===Paragraph {{nyvmcsaprov|11}} '''{{nyvmcsaprov|Miscellaneous)}}'''===
{{nyvmcsaprov|11(a)}} '''{{nyvmcsaprov|Default Interest}}'''. A {{nyvmcsaprov|Secured Party}} that fails to make, when due, any {{nyvmcsaprov|Transfer}} of {{nyvmcsaprov|Posted Collateral (VM)}} will be obligated to pay the {{nyvmcsaprov|Pledgor}} (to the extent permitted under applicable law) an amount equal to interest at the Default Rate multiplied by the {{nyvmcsaprov|Value}} of the items of property that were required to be {{nyvmcsaprov|Transfer}}red, from (and including) the date that {{nyvmcsaprov|Posted Collateral (VM)}} was required to be {{nyvmcsaprov|Transfer}}red to (but excluding) the date of {{nyvmcsaprov|Transfer}} of that {{nyvmcsaprov|Posted Collateral (VM)}}. This interest will be calculated on the basis of daily compounding and the actual number of days elapsed. An {{nyvmcsaprov|Interest Payer (VM)}} that fails to make, when due, any {{nyvmcsaprov|Transfer}} of an {{nyvmcsaprov|Interest Payment (VM)}} will be obligated to pay the {{nyvmcsaprov|Interest Payee (VM)}} (to the extent permitted under applicable law) an amount equal to interest at the Default Rate (and for such purposes, if the Default Rate is less than zero, it will be deemed to be zero) multiplied by that {{nyvmcsaprov|Interest Payment (VM)}}, from (and including) the date that {{nyvmcsaprov|Interest Payment (VM)}} was required to be {{nyvmcsaprov|Transfer}}red to (but excluding) the date of {{nyvmcsaprov|Transfer}} of that {{nyvmcsaprov|Interest Payment (VM)}}. This interest will be calculated on the basis of daily compounding and the actual number of days elapsed.<br>
{{nyvmcsaprov|11(b)}} '''{{nyvmcsaprov|Further Assurances}}'''. Promptly following a demand made by a party, the other party will execute, deliver, file and record any financing statement, specific assignment or other document and take any other action that may be necessary or desirable and reasonably requested by that party to create, preserve, perfect or validate any security interest or lien granted under Paragraph 2, to enable that party to exercise or enforce its rights under this Annex with respect to {{nyvmcsaprov|Posted Credit Support (VM)}} or an {{nyvmcsaprov|Interest Payment (VM)}} or to effect or document a release of a security interest on {{nyvmcsaprov|Posted Collateral (VM)}} or an {{nyvmcsaprov|Interest Payment (VM)}}.<br>
{{nyvmcsaprov|11(c)}} '''{{nyvmcsaprov|Further Protection}}'''. The {{nyvmcsaprov|Pledgor}} will promptly give notice to the {{nyvmcsaprov|Secured Party}} of, and defend against, any suit, action, proceeding or lien that involves {{nyvmcsaprov|Posted Credit Support (VM)}} {{nyvmcsaprov|Transfer}}red by the {{nyvmcsaprov|Pledgor}} or that could adversely affect the security interest and lien granted by it under Paragraph 2, unless that suit, action, proceeding or lien results from the exercise of the {{nyvmcsaprov|Secured Party}}’s rights under Paragraph 6(c).<br>
{{nyvmcsaprov|11(d)}} '''{{nyvmcsaprov|Good Faith and Commercially Reasonable Manner}}'''. Performance of all obligations under this Annex, including, but not limited to, all calculations, valuations and determinations made by either party, will be made in good faith and in a commercially reasonable manner.<br>
{{nyvmcsaprov|11(e)}} {{nyvmcsaprov|Demands and Notices}}. All {{nyvmcsaprov|Demands and Notices}} made by a party under this Annex will be made as specified in the Notices Section of this Agreement, except as otherwise provided in Paragraph {{nyvmcsaprov|13}}.<br>
{{nyvmcsaprov|11(f)}} '''{{nyvmcsaprov|Specifications of Certain Matters}}'''. Anything referred to in this Annex as being specified in Paragraph {{nyvmcsaprov|13}} also may be specified in one or more Confirmations or other documents and this Annex will be construed accordingly.<br>
{{nyvmcsaprov|11(g)}} '''{{nyvmcsaprov|Legally Ineligible Credit Support (VM)}}'''. Unless otherwise specified in Paragraph {{nyvmcsaprov|13}}, upon delivery of a {{nyvmcsaprov|Legal Ineligibility Notice}} by a party, each item of {{nyvmcsaprov|Eligible Credit Support (VM)}} (or a specified amount of such item) identified in such notice (i) will cease to be {{nyvmcsaprov|Eligible Credit Support (VM)}} for purposes of {{nyvmcsaprov|Transfer}}s to such party as the {{nyvmcsaprov|Secured Party}} hereunder as of the applicable {{nyvmcsaprov|Transfer Ineligibility Date}}, (ii) will cease to be {{nyvmcsaprov|Eligible Credit Support (VM)}} for the other party as the {{nyvmcsaprov|Pledgor}} for all purposes hereunder as of the {{nyvmcsaprov|Total Ineligibility Date}} and (iii) will have a {{nyvmcsaprov|Value}} of zero on and from the {{nyvmcsaprov|Total Ineligibility Date}}.<br>
“'''{{nyvmcsaprov|Legal Ineligibility Notice}}'''” means a written notice from the {{nyvmcsaprov|Secured Party}} to the {{nyvmcsaprov|Pledgor}} in which the {{nyvmcsaprov|Secured Party}} (i) represents that the {{nyvmcsaprov|Secured Party}} has determined that one or more items of {{nyvmcsaprov|Eligible Credit Support (VM)}} (or a specified amount of any such item) either has ceased to satisfy, or as of a specified date will cease to satisfy, collateral eligibility requirements under law applicable to the {{nyvmcsaprov|Secured Party}} requiring the collection of variation margin (the “'''{{nyvmcsaprov|Legal Eligibility Requirements}}'''”), (ii) lists the item(s) of {{nyvmcsaprov|Eligible Credit Support (VM)}} (and, if applicable, the specified amount) that have ceased to satisfy, or as of a specified date will cease to satisfy, the {{nyvmcsaprov|Legal Eligibility Requirements}}, (iii) describes the reason(s) why such item(s) of {{nyvmcsaprov|Eligible Credit Support (VM)}} (or the specified amount thereof) have ceased to satisfy, or will cease to satisfy, the {{nyvmcsaprov|Legal Eligibility Requirements}} and (iv) specifies the {{nyvmcsaprov|Total Ineligibility Date}} and, if different, the {{nyvmcsaprov|Transfer Ineligibility Date}}.<br>
“'''{{nyvmcsaprov|Total Ineligibility Date}}'''” means the date on which the relevant item of {{nyvmcsaprov|Eligible Credit Support (VM)}} (or a specified amount of such item) has ceased to satisfy, or will cease to satisfy, the {{nyvmcsaprov|Legal Eligibility Requirements}} applicable to the {{nyvmcsaprov|Secured Party}} for all purposes hereunder; provided that, unless otherwise specified in Paragraph {{nyvmcsaprov|13}}, if such date is earlier than the fifth {{nyvmcsaprov|Local Business Day}} following the date on which the {{nyvmcsaprov|Legal Ineligibility Notice}} is delivered, the {{nyvmcsaprov|Total Ineligibility Date}} will be the fifth {{nyvmcsaprov|Local Business Day}} following the date of such delivery.<br>
“'''{{nyvmcsaprov|Transfer Ineligibility Date}}'''” means the date on which the relevant item of {{nyvmcsaprov|Eligible Credit Support (VM)}} (or a specified amount of such item) has ceased to satisfy, or will cease to satisfy, the {{nyvmcsaprov|Legal Eligibility Requirements}} for purposes of {{nyvmcsaprov|Transfer}}s to the {{nyvmcsaprov|Secured Party}} hereunder; provided that, unless otherwise specified in Paragraph {{nyvmcsaprov|13}}, if such date is earlier than the fifth {{nyvmcsaprov|Local Business Day}} following the date on which the {{nyvmcsaprov|Legal Ineligibility Notice}} is delivered, the {{nyvmcsaprov|Transfer Ineligibility Date}} will be the fifth {{nyvmcsaprov|Local Business Day}} following the date of such delivery.<br>
{{nyvmcsaprov|11(h)}} '''{{nyvmcsaprov|Return of Posted Credit Support (VM) with a Value of Zero}}'''. Subject to Paragraph {{nyvmcsaprov|4(a)}}, the {{nyvmcsaprov|Secured Party}} will, promptly upon demand (but in no event later than the time at which a {{nyvmcsaprov|Transfer}} would be due under Paragraph 4(b) with respect to a demand for the {{nyvmcsaprov|Transfer}} of {{nyvmcsaprov|Eligible Credit Support (VM)}} or {{nyvmcsaprov|Posted Credit Support (VM)}}), {{nyvmcsaprov|Transfer}} to the {{nyvmcsaprov|Pledgor}} any item of {{nyvmcsaprov|Posted Credit Support (VM)}} (or the specified amount of such item) that as of the date of such demand has a {{nyvmcsaprov|Value}} of zero; provided that the {{nyvmcsaprov|Secured Party}} will only be obligated to {{nyvmcsaprov|Transfer}} any {{nyvmcsaprov|Posted Credit Support (VM)}} in accordance with this Paragraph 11(h), if, as of the date of {{nyvmcsaprov|Transfer}} of such item, the {{nyvmcsaprov|Pledgor}} has satisfied all of its {{nyvmcsaprov|Transfer}} obligations under this Annex, if any.<br>
{{nyvmcsaprov|11(i)}} '''{{nyvmcsaprov|Reinstatement of Credit Support Eligibility}}'''. Upon a reasonable request by the {{nyvmcsaprov|Pledgor}}, the {{nyvmcsaprov|Secured Party}} will determine whether an item (or a specified amount of such item) of {{nyvmcsaprov|Eligible Credit Support (VM)}} that was the subject of a prior {{nyvmcsaprov|Legal Ineligibility Notice}} would currently satisfy the {{nyvmcsaprov|Legal Eligibility Requirements}} applicable to the {{nyvmcsaprov|Secured Party}}. If the {{nyvmcsaprov|Secured Party}} determines that as of such date of determination such item (or specified amount of such item) satisfies the {{nyvmcsaprov|Legal Eligibility Requirements}} applicable to the {{nyvmcsaprov|Secured Party}}, the {{nyvmcsaprov|Secured Party}} will promptly following such determination rescind the relevant {{nyvmcsaprov|Legal Ineligibility Notice}} with respect to such item (or specified amount of such item) by written notice to the {{nyvmcsaprov|Pledgor}}. Upon the delivery of such notice, the relevant item (or specified amount of such item) will constitute {{nyvmcsaprov|Eligible Credit Support (VM)}} hereunder.<br>
{{nyvmcsaprov|11(j)}} '''{{nyvmcsaprov|Credit Support Offsets}}'''. If the parties specify that “{{nyvmcsaprov|Credit Support Offsets}}” is applicable in Paragraph {{nyvmcsaprov|13}}, and on any date:<br>
:{{nyvmcsaprov|11(j)(i)}} a {{nyvmcsaprov|Transfer}} of {{nyvmcsaprov|Eligible Credit Support (VM)}} is due under this Annex to satisfy a {{nyvmcsaprov|Delivery Amount (VM)}} or a {{nyvmcsaprov|Return Amount (VM)}} obligation, and a {{nyvmcsaprov|Transfer}} of credit support (other than any {{nyvmcsaprov|Other CSA Excluded Credit Support}}) is also due under any {{nyvmcsaprov|Other CSA}};<br>
:{{nyvmcsaprov|11(j)(ii)}} the parties have notified each other of the credit support that they intend to {{nyvmcsaprov|Transfer}} under this Annex and {{nyvmcsaprov|Transfer}} under such {{nyvmcsaprov|Other CSA}} (other than any {{nyvmcsaprov|Other CSA Excluded Credit Support}}) to satisfy their respective obligations; and<br>
:{{nyvmcsaprov|11(j)(iii)}} in respect of Paragraph 11(j)(ii), each party intends to {{nyvmcsaprov|Transfer}} one or more types of credit support that is fully fungible with one or more types of credit support the other party intends to {{nyvmcsaprov|Transfer}} (each such credit support, a “'''{{nyvmcsaprov|Fungible Credit Support Type}}'''”),<br>
then, on such date and in respect of each such {{nyvmcsaprov|Fungible Credit Support Type}}, each party’s obligation to make a {{nyvmcsaprov|Transfer}} of any such {{nyvmcsaprov|Fungible Credit Support Type}} hereunder or under such {{nyvmcsaprov|Other CSA}} will be automatically satisfied and discharged and, if the aggregate amount that would have otherwise been {{nyvmcsaprov|Transfer}}red by one party exceeds the aggregate amount that would have otherwise been {{nyvmcsaprov|Transfer}}red by the other party, replaced by an obligation hereunder or under such {{nyvmcsaprov|Other CSA}}, as applicable, upon the party by which the larger aggregate amount would have been {{nyvmcsaprov|Transfer}}red to {{nyvmcsaprov|Transfer}} to the other party the excess of the larger aggregate amount over the smaller aggregate amount. If a party’s obligation to make a {{nyvmcsaprov|Transfer}} of credit support under this Annex or an {{nyvmcsaprov|Other CSA}} is automatically satisfied and discharged pursuant to this Paragraph 11(j), then, for purposes of this Annex or the {{nyvmcsaprov|Other CSA}}, as applicable, the other party will be deemed to have received credit support of the applicable {{nyvmcsaprov|Fungible Credit Support Type}} in the amount that would otherwise have been required to be {{nyvmcsaprov|Transfer}}red, in each case on the day on which the relevant {{nyvmcsaprov|Transfer}} was due.<br>
 
===Paragraph {{nyvmcsaprov|12}} '''{{nyvmcsaprov|Definitions}}'''===
As used in this Annex:—<br>
“'''{{nyvmcsaprov|Base Currency}}'''” means the currency specified as such in Paragraph {{nyvmcsaprov|13}}.<br>
“'''{{nyvmcsaprov|Base Currency Equivalent}}'''” means, with respect to an amount on a {{nyvmcsaprov|Valuation Date}}, in the case of an amount denominated in the {{nyvmcsaprov|Base Currency}}, such {{nyvmcsaprov|Base Currency}} amount and, in the case of an amount denominated in a currency other than the {{nyvmcsaprov|Base Currency}} (the “'''{{nyvmcsaprov|Other Currency}}'''”), the amount of {{nyvmcsaprov|Base Currency}} required to purchase such amount of the Other Currency at the spot exchange rate on such {{nyvmcsaprov|Valuation Date}} as determined by the {{nyvmcsaprov|Valuation Agent}}.<br>
“'''{{nyvmcsaprov|Cash}}'''” means, respectively, the {{nyvmcsaprov|Base Currency}} and each other {{nyvmcsaprov|Eligible Currency}}. <br>
“'''{{nyvmcsaprov|Covered Transaction}}'''” has the meaning specified in Paragraph {{nyvmcsaprov|13}}.<br>
“'''{{nyvmcsaprov|Credit Support Eligibility Condition (VM)}}'''” means, with respect to any item specified for a party as {{nyvmcsaprov|Eligible Collateral (VM)}} in Paragraph {{nyvmcsaprov|13}}, any condition specified for that item in Paragraph {{nyvmcsaprov|13}}.<br>
“'''{{nyvmcsaprov|Custodian (VM)}}'''” has the meaning specified in Paragraphs 6(b)(i) and 13. <br>
“'''{{nyvmcsaprov|Delivery Amount (VM)}}'''” has the meaning specified in Paragraph 3(a).<br>
“'''{{nyvmcsaprov|Delivery Amount Reduction (VM)}}'''” has the meaning specified in Paragraph 6(d)(ii)(A)(II). <br>
“'''{{nyvmcsaprov|Disputing Party}}'''” has the meaning specified in Paragraph 5.<br>
“'''{{nyvmcsaprov|Distributions}}'''” means with respect to {{nyvmcsaprov|Posted Collateral (VM)}} other than {{nyvmcsaprov|Cash}}, all principal, interest and other payments and distributions of {{nyvmcsaprov|Cash}} or other property with respect thereto, regardless of whether the {{nyvmcsaprov|Secured Party}} has disposed of that {{nyvmcsaprov|Posted Collateral (VM)}} under Paragraph 6(c). {{nyvmcsaprov|Distributions}} will not include any item of property acquired by the {{nyvmcsaprov|Secured Party}} upon any disposition or liquidation of {{nyvmcsaprov|Posted Collateral (VM)}} or, with respect to any {{nyvmcsaprov|Posted Collateral (VM)}} in the form of {{nyvmcsaprov|Cash}}, any distributions on that collateral, unless otherwise specified herein.<br>
“'''{{nyvmcsaprov|Eligible Collateral (VM)}}'''” has the meaning specified in Paragraph {{nyvmcsaprov|13}}.<br>
“'''{{nyvmcsaprov|Eligible Credit Support (VM)}}'''” means {{nyvmcsaprov|Eligible Collateral (VM)}} and {{nyvmcsaprov|Other Eligible Support (VM)}}.<br>
“'''{{nyvmcsaprov|Eligible Currency}}'''” means each currency specified as such in Paragraph {{nyvmcsaprov|13}}, if such currency is freely available. <br>
“'''{{nyvmcsaprov|Eligible Return Amount (VM)}}'''” has the meaning specified in Paragraph 6(d)(ii)(A)(I)(a).<br>
“'''{{nyvmcsaprov|Exposure}}'''” means, unless otherwise specified in Paragraph {{nyvmcsaprov|13}}, for any {{nyvmcsaprov|Valuation Date}} or other date for which {{nyvmcsaprov|Exposure}} is calculated and subject to Paragraph 5 in the case of a dispute:<br>
:{{nyvmcsaprov|(i)}} if this Agreement is a 1992 ISDA Master Agreement, the amount, if any, that would be payable to a party that is the {{nyvmcsaprov|Secured Party}} by the other party (expressed as a positive number) or by a party that is the {{nyvmcsaprov|Secured Party}} to the other party (expressed as a negative number) pursuant to Section 6(e)(ii)(2)(A) of this Agreement as if all {{nyvmcsaprov|Covered Transactions}} were being terminated as of the relevant {{nyvmcsaprov|Valuation Time}} on the basis that the {{nyvmcsaprov|Base Currency}} is the Termination Currency; provided that Market Quotation will be determined by the {{nyvmcsaprov|Valuation Agent}} on behalf of that party using its estimates at mid-market of the amounts that would be paid for Replacement {{isdaprov|Transaction}}s (as that term is defined in the definition of “Market Quotation”); and<br>
:{{nyvmcsaprov|(ii)}} if this Agreement is an ISDA 2002 Master Agreement or a 1992 ISDA Master Agreement in which the definition of Loss and/or Market Quotation has been amended (including where such amendment has occurred pursuant to the terms of a separate agreement or protocol) to reflect the definition of Close-out Amount from the pre-printed form of the ISDA 2002 Master Agreement as published by ISDA, the amount, if any, that would be payable to a party that is the {{nyvmcsaprov|Secured Party}} by the other party (expressed as a positive number) or by a party that is the {{nyvmcsaprov|Secured Party}} to the other party (expressed as a negative number) pursuant to Section 6(e)(ii)(1) (but without reference to clause (3) of Section 6(e)(ii)) of this Agreement as if all {{nyvmcsaprov|Covered Transactions}} were being terminated as of the relevant {{nyvmcsaprov|Valuation Time}} on the basis that the {{nyvmcsaprov|Base Currency}} is the Termination Currency; provided that the Close-out Amount will be determined by the {{nyvmcsaprov|Valuation Agent}} on behalf of that party using its estimates at mid-market of the amounts that would be paid for {{isdaprov|Transaction}}s providing the economic equivalent of (X) the material terms of the {{nyvmcsaprov|Covered Transactions}}, including the payments and deliveries by the parties under Section 2(a)(i) in respect of the {{nyvmcsaprov|Covered Transactions}} that would, but for the occurrence of the relevant {{isdaprov|Early Termination Date}}, have been required after that date (assuming satisfaction of the conditions precedent in Section 2(a)(iii)), and (Y) the option rights of the parties in respect of the {{nyvmcsaprov|Covered Transactions}}.<br>
“'''{{nyvmcsaprov|Fungible Credit Support Type}}'''” has the meaning specified in Paragraph 11(j)(iii).<br>
“'''{{nyvmcsaprov|FX Haircut Percentage}}'''” means, for any item of {{nyvmcsaprov|Eligible Collateral (VM)}}, the percentage specified as such in Paragraph {{nyvmcsaprov|13}}.<br>
“'''{{nyvmcsaprov|Interest Adjustment Reduction Amount (VM)}}'''” has the meaning specified in Paragraph 6(d)(ii)(B)(II).<br>
“'''{{nyvmcsaprov|Interest Amount (VM)}}'''” means, with respect to an {{nyvmcsaprov|Interest Period}}, the aggregate sum of the {{nyvmcsaprov|Base Currency Equivalent}}s of the amounts of interest determined for each relevant currency and calculated for each day in that {{nyvmcsaprov|Interest Period}} on any {{nyvmcsaprov|Posted Collateral (VM)}} in the form of {{nyvmcsaprov|Cash}} in such currency held by the {{nyvmcsaprov|Secured Party}} on that day, determined by the {{nyvmcsaprov|Secured Party}} for each such day as follows:<br>
:{{nyvmcsaprov|(i)}} the amount of {{nyvmcsaprov|Cash}} in such currency on that day plus, only if “{{nyvmcsaprov|Daily Interest Compounding}}” is specified as applicable in Paragraph {{nyvmcsaprov|13}}, the aggregate of each {{nyvmcsaprov|Interest Amount (VM)}} in respect of such currency determined for each preceding day, if any, in that {{nyvmcsaprov|Interest Period}}; multiplied by<br>
:{{nyvmcsaprov|(ii)}} the {{nyvmcsaprov|Interest Rate (VM)}} in effect for that day; divided by<br>
:{{nyvmcsaprov|(iii)}} 360 (or, in the case of pounds sterling or any other currency specified as an “A/365 Currency” in Paragraph {{nyvmcsaprov|13}}, 365);<br>
provided that, unless “{{nyvmcsaprov|Negative Interest}}” is specified as applicable in Paragraph {{nyvmcsaprov|13}}, if the {{nyvmcsaprov|Interest Amount (VM)}} for an {{nyvmcsaprov|Interest Period}} would be a negative amount, it will be deemed to be zero.<br>
“'''{{nyvmcsaprov|Interest Payee (VM)}}'''” means, in relation to an {{nyvmcsaprov|Interest Payer (VM)}}, the other party.<br>
“'''{{nyvmcsaprov|Interest Payer (VM)}}'''” means the {{nyvmcsaprov|Secured Party}}; provided that if "{{nyvmcsaprov|Negative Interest}}" is specified as applicable in Paragraph {{nyvmcsaprov|13 }} and an {{nyvmcsaprov|Interest Payment (VM)}} is determined in respect of a negative {{nyvmcsaprov|Interest Amount (VM)}}, the {{nyvmcsaprov|Interest Payer (VM)}} in respect of such {{nyvmcsaprov|Interest Payment (VM)}} will be the {{nyvmcsaprov|Pledgor}}.<br>
“'''{{nyvmcsaprov|Interest Payment (VM)}}'''” means, with respect to an {{nyvmcsaprov|Interest Period}}, the {{nyvmcsaprov|Interest Amount (VM)}} determined in respect of such {{nyvmcsaprov|Interest Period}}; provided that in respect of any negative {{nyvmcsaprov|Interest Amount (VM)}}, the {{nyvmcsaprov|Interest Payment (VM)}} will be the absolute {{nyvmcsaprov|Value}} of such negative {{nyvmcsaprov|Interest Amount (VM)}}.<br>
“'''{{nyvmcsaprov|Interest Period}}'''” means the period from (and including) the last day on which (i) a party became obligated to {{nyvmcsaprov|Transfer}} an {{nyvmcsaprov|Interest Payment (VM)}} or (ii) an {{nyvmcsaprov|Interest Amount (VM)}} was included or otherwise became constituted as part of {{nyvmcsaprov|Posted Collateral (VM)}} (or, if no {{nyvmcsaprov|Interest Payment (VM)}} or {{nyvmcsaprov|Interest Amount (VM)}} has yet fallen due or been included or otherwise became constituted as a part of {{nyvmcsaprov|Posted Collateral (VM)}}, respectively, the day on which {{nyvmcsaprov|Eligible Credit Support (VM)}} in the form of {{nyvmcsaprov|Cash}} was {{nyvmcsaprov|Transfer}}red to or received by the {{nyvmcsaprov|Secured Party}}) to (but excluding) the day on which (i) a party is obligated to {{nyvmcsaprov|Transfer}} the current {{nyvmcsaprov|Interest Payment (VM)}} or (ii) the current {{nyvmcsaprov|Interest Amount (VM)}} is included or otherwise becomes constituted as a part of {{nyvmcsaprov|Posted Collateral (VM)}}.<br>
“'''{{nyvmcsaprov|Interest Rate (VM)}}'''” means, with respect to an {{nyvmcsaprov|Eligible Currency}}, the rate specified in Paragraph {{nyvmcsaprov|13 }} for that currency.<br>
“'''{{nyvmcsaprov|Legal Eligibility Requirements}}'''” has the meaning specified in Paragraph 11(g). “'''{{nyvmcsaprov|Legal Ineligibility Notice}}'''” has the meaning specified in Paragraph 11(g). <br>
“'''{{nyvmcsaprov|Local Business Day}}'''”, unless otherwise specified in Paragraph {{nyvmcsaprov|13}}, means:<br>
:{{nyvmcsaprov|(i)}} in relation to a {{nyvmcsaprov|Transfer}} of {{nyvmcsaprov|Cash}} or other property (other than securities) under this Annex, a day on which commercial banks are open for business (including dealings in foreign exchange and foreign currency deposits) in the place where the relevant account is located and, if different, in the principal financial center, if any, of the currency of such payment;<br>
:{{nyvmcsaprov|(ii)}} in relation to a {{nyvmcsaprov|Transfer}} of securities under this Annex, a day on which the clearance system agreed between the parties for delivery of the securities is open for the acceptance and execution of settlement instructions or, if delivery of the securities is contemplated by other means, a day on which commercial banks are open for business (including dealings in foreign exchange and foreign currency deposits) in the place(s) agreed between the parties for this purpose;<br>
:{{nyvmcsaprov|(iii)}} in relation to the {{nyvmcsaprov|Resolution Time}}, a day on which commercial banks are open for business (including dealings in foreign exchange and foreign currency deposits) in at least one {{nyvmcsaprov|Valuation Date Location}} for Party A and at least one {{nyvmcsaprov|Valuation Date Location}} for Party B; and<br>
:{{nyvmcsaprov|(iv)}} in relation to any notice or other communication under this Annex, a day on which commercial banks are open for business (including dealings in foreign exchange and foreign currency deposits) in the place specified in the address for notice most recently provided by the recipient.<br>
“'''{{nyvmcsaprov|Minimum Transfer Amount}}'''” means, with respect to a party, the amount specified as such for that party in Paragraph 13; if no amount is specified, zero.<br>
“'''{{nyvmcsaprov|Notification Time}}'''” has the meaning specified in Paragraph {{nyvmcsaprov|13}}.<br>
“'''{{nyvmcsaprov|Obligations}}'''” means, with respect to a party, all present and future obligations of that party under this Agreement and any additional obligations specified for that party in Paragraph {{nyvmcsaprov|13}}.<br>
“'''{{nyvmcsaprov|Other CSA}}'''” means, unless otherwise specified in Paragraph {{nyvmcsaprov|13}}, any other credit support annex or credit support deed that is in relation to, or that is a {{isdaprov|Credit Support Document)}} in relation to, this Agreement.<br>
“'''{{nyvmcsaprov|Other CSA Excluded Credit Support}}'''” means, with respect to an {{nyvmcsaprov|Other CSA}}, any amounts and items posted as margin under such {{nyvmcsaprov|Other CSA}}, which, pursuant to the terms of such {{nyvmcsaprov|Other CSA}}, Party A and Party B have agreed must be segregated in an account maintained by a third-party custodian or for which offsets are prohibited.<br>
“'''{{nyvmcsaprov|Other Eligible Support (VM)}}'''” means, with respect to a party, the items, if any, specified as such for that party in Paragraph {{nyvmcsaprov|13}}.<br>
“'''{{nyvmcsaprov|Other Posted Support (VM)}}'''” means all {{nyvmcsaprov|Other Eligible Support (VM)}} {{nyvmcsaprov|Transfer}}red to the {{nyvmcsaprov|Secured Party}} that remains in effect for the benefit of that {{nyvmcsaprov|Secured Party}}.<br>
“'''{{nyvmcsaprov|Pledgor}}'''” means either party, when that party (i) receives a demand for or is required to {{nyvmcsaprov|Transfer}} {{nyvmcsaprov|Eligible Credit Support (VM)}} under Paragraph 3(a) or (ii) has {{nyvmcsaprov|Transfer}}red {{nyvmcsaprov|Eligible Credit Support (VM)}} under Paragraph 3(a).<br>
“'''{{nyvmcsaprov|Posted Collateral (VM)}}'''” means all {{nyvmcsaprov|Eligible Collateral (VM)}}, other property, {{nyvmcsaprov|Distributions}}, and all proceeds thereof that have been {{nyvmcsaprov|Transfer}}red to or received by the {{nyvmcsaprov|Secured Party}} under this Annex and not {{nyvmcsaprov|Transfer}}red to the {{nyvmcsaprov|Pledgor}} pursuant to Paragraph 3(b), 4(d)(ii), 6(d)(i) or 11(h) or released by the {{nyvmcsaprov|Secured Party}} under Paragraph '''{{nyvmcsaprov|8}}'''. With respect to any {{nyvmcsaprov|Other Eligible Support (VM)}} in respect of any {{nyvmcsaprov|Interest Payment (VM)}} or relevant part thereof not {{nyvmcsaprov|Transfer}}red pursuant to Paragraph 6(d)(ii)(A) or Paragraph 6(d)(ii)(B), as applicable, if such {{nyvmcsaprov|Interest Amount (VM)}} is a positive number, such {{nyvmcsaprov|Interest Amount (VM)}} will constitute {{nyvmcsaprov|Posted Collateral (VM)}} in the form of {{nyvmcsaprov|Cash}} in the {{nyvmcsaprov|Base Currency}}.<br>
“'''{{nyvmcsaprov|Posted Credit Support (VM)}}'''” means {{nyvmcsaprov|Posted Collateral (VM)}} and {{nyvmcsaprov|Other Posted Support (VM)}}.<br>
“'''{{nyvmcsaprov|Recalculation Date}}'''” means the {{nyvmcsaprov|Valuation Date}} that gives rise to the dispute under Paragraph 5; provided, however, that if a subsequent {{nyvmcsaprov|Valuation Date}} occurs under Paragraph 3 prior to the resolution of the dispute, then the “'''{{nyvmcsaprov|Recalculation Date}}'''” means the most recent {{nyvmcsaprov|Valuation Date}} under Paragraph 3.<br>
“'''{{nyvmcsaprov|Regular Settlement Day}}'''” means, unless otherwise specified in Paragraph {{nyvmcsaprov|13}}, the same {{nyvmcsaprov|Local Business Day}} on which a demand for the {{nyvmcsaprov|Transfer}} of {{nyvmcsaprov|Eligible Credit Support (VM)}} or {{nyvmcsaprov|Posted Credit Support (VM)}} is made.<br>
“'''{{nyvmcsaprov|Resolution Time}}'''” has the meaning specified in Paragraph {{nyvmcsaprov|13}}. <br>
“'''{{nyvmcsaprov|Return Amount (VM)}}'''” has the meaning specified in Paragraph 3(b).<br>
“'''{{nyvmcsaprov|Return Amount Reduction (VM)}}'''” has the meaning specified in Paragraph 6(d)(ii)(A)(II).<br>
“'''{{nyvmcsaprov|Secured Party}}'''” means either party, when that party (i) makes a demand for or is entitled to receive {{nyvmcsaprov|Eligible Credit Support (VM)}} under Paragraph {{nyvmcsaprov|3(a)}} or (ii) holds or is deemed to hold {{nyvmcsaprov|Posted Credit Support (VM)}}.<br>
“'''{{nyvmcsaprov|Set-off}}'''” means {{nyvmcsaprov|Set-off}}, offset, combination of accounts, right of retention or withholding or similar right or requirement (whether arising under this Agreement, another contract, applicable law or otherwise) and, when used as a verb, the exercise of any such right or the imposition of any such requirement.<br>
“'''{{nyvmcsaprov|Specified Condition}}'''” means, with respect to a party, any event specified as such for that party in Paragraph '''{{nyvmcsaprov|13}}'''. <br>
“'''{{nyvmcsaprov|Substitute Credit Support (VM)}}'''” has the meaning specified in Paragraph 4(d)(i).<br>
“'''{{nyvmcsaprov|Substitution Date}}'''” has the meaning specified in Paragraph 4(d)(ii).<br>
“'''{{nyvmcsaprov|Total Ineligibility Date}}'''” has the meaning specified in Paragraph 11(g) unless otherwise specified in Paragraph {{nyvmcsaprov|13}}.<br>
“'''{{nyvmcsaprov|Transfer}}'''” means, with respect to any {{nyvmcsaprov|Eligible Credit Support (VM)}}, {{nyvmcsaprov|Posted Credit Support (VM)}} or {{nyvmcsaprov|Interest Payment (VM)}}, and in accordance with the instructions of the {{nyvmcsaprov|Secured Party}}, {{nyvmcsaprov|Pledgor}} or {{nyvmcsaprov|Custodian (VM)}}, as applicable:<br>
:{{nyvmcsaprov|(i)}} in the case of {{nyvmcsaprov|Cash}}, payment or delivery by wire {{nyvmcsaprov|Transfer}} into one or more bank accounts specified by the recipient;<br>
:{{nyvmcsaprov|(ii)}} in the case of certificated securities that cannot be paid or delivered by book-entry, payment or delivery in appropriate physical form to the recipient or its account accompanied by any duly executed instruments of {{nyvmcsaprov|Transfer}}, assignments in blank, {{nyvmcsaprov|Transfer}} tax stamps and any other documents necessary to constitute a legally valid {{nyvmcsaprov|Transfer}} to the recipient;<br>
:{{nyvmcsaprov|(iii)}} in the case of securities that can be paid or delivered by book-entry, causing the relevant depository institution(s) or other securities intermediaries to make changes to their books and records sufficient to result in a legally effective {{nyvmcsaprov|Transfer}} of the relevant interest to the recipient or its agent; and<br>
:{{nyvmcsaprov|(iv)}} in the case of {{nyvmcsaprov|Other Eligible Support (VM)}} or {{nyvmcsaprov|Other Posted Support (VM)}}, as specified in Paragraph {{nyvmcsaprov|13}}.<br>
“'''{{nyvmcsaprov|Transfer Ineligibility Date}}'''” has the meaning specified in Paragraph 11(g) unless otherwise specified in Paragraph {{nyvmcsaprov|13}}.<br>
“'''{{nyvmcsaprov|Valuation Agent}}'''” has the meaning specified in Paragraph {{nyvmcsaprov|13}}.<br>
“'''{{nyvmcsaprov|Valuation Date}}'''” means, unless otherwise specified in Paragraph {{nyvmcsaprov|13}}, each day from, and including, the date of this Annex, that is a day on which commercial banks are open for business (including dealings in foreign exchange and foreign currency deposits) in at least one {{nyvmcsaprov|Valuation Date Location}} for Party A and at least one {{nyvmcsaprov|Valuation Date Location}} for Party B.<br>
“'''{{nyvmcsaprov|Valuation Date Location}}'''” has the meaning specified in Paragraph {{nyvmcsaprov|13}}.<br>
“'''{{nyvmcsaprov|Valuation Percentage}}'''” means, for any item of {{nyvmcsaprov|Eligible Collateral (VM)}}, the percentage specified as such in Paragraph {{nyvmcsaprov|13}}.<br>
“'''{{nyvmcsaprov|Valuation Time}}'''” means, unless otherwise specified in Paragraph {{nyvmcsaprov|13}}, the time as of which the {{nyvmcsaprov|Valuation Agent}} computes its end of day valuations of derivatives {{isdaprov|Transaction}}s in the ordinary course of its business (or such other commercially reasonable convenient time on the relevant day as the {{nyvmcsaprov|Valuation Agent}} may determine).<br>
“'''{{nyvmcsaprov|Value}}'''” means for any {{nyvmcsaprov|Valuation Date}} or other date for which {{nyvmcsaprov|Value}} is calculated and subject to Paragraph 5 in the case of a dispute, with respect to:<br>
:{{nyvmcsaprov|(i)}} {{nyvmcsaprov|Eligible Collateral (VM)}} or {{nyvmcsaprov|Posted Collateral (VM)}} that is:<br>
::(A) an amount of {{nyvmcsaprov|Cash}}, the {{nyvmcsaprov|Base Currency Equivalent}} of such amount multiplied by (VP – HFX); and<br>
::(B) a security, the {{nyvmcsaprov|Base Currency Equivalent}} of the bid price obtained by the {{nyvmcsaprov|Valuation Agent}} multiplied by (VP – HFX), where:<br>
:::VP equals the applicable Valuation Percentage; and <br>
:::HFX equals the applicable '''{{nyvmcsaprov|FX Haircut Percentage)}}''';<br>
:{{nyvmcsaprov|(ii)}} {{nyvmcsaprov|Posted Collateral (VM)}} that consists of items that are not {{nyvmcsaprov|Eligible Collateral (VM)}} (including any item or any portion of any item that fails to satisfy any (A) {{nyvmcsaprov|Credit Support Eligibility Condition (VM))}} applicable to it or (B) applicable {{nyvmcsaprov|Legal Eligibility Requirements}}), zero; and<br>
:{{nyvmcsaprov|(iii)}} {{nyvmcsaprov|Other Eligible Support (VM) and Other Posted Support (VM)}}, as specified in Paragraph {{nyvmcsaprov|13}}.<br>
 
===Paragraph '''{{nyvmcsaprov|13}}'''. {{nyvmcsaprov|Elections and Variables}}===
(a) {{nyvmcsaprov|Base Currency and Eligible Currency}}.<br>
(i) “'''{{nyvmcsaprov|Base Currency}}'''” means United States Dollars, unless otherwise specified here: [...]<br>
[...]<br>
(ii) “'''{{nyvmcsaprov|Eligible Currency}}'''” means the {{nyvmcsaprov|Base Currency}} and each other currency specified here:[...]<br>
[...]<br>
(b) {{nyvmcsaprov|Covered Transactions; Security Interest for Obligations; Exposure}}.<br>
(i) The term “{{nyvmcsaprov|Covered Transactions}}” as used in this Annex includes any {{isdaprov|Transaction}} specified below that is entered into on or after [...], except as otherwise provided in the Confirmation of such {{isdaprov|Transaction}}:<br>
(A) For purposes of the foregoing, the term “{{nyvmcsaprov|Covered Transactions}}” includes: [Any {{isdaprov|Transaction}} [that is any of the following] [Swap], [Security-Based Swap], [OTC Derivative], [Physically Settled FX Forward] or [Physically Settled FX Swap]] [and is not any of the following: [Swap], [Security-Based Swap], [OTC Derivative], [Physically Settled FX Forward], or [Physically Settled FX Swap][...]]
As used above:<br>
[“OTC Derivative” means an “OTC derivative” or “OTC derivative contract” as defined in Article 2(7) of Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories (“EMIR”) other than one which constitutes (i) a “foreign exchange forward” as defined in Article 7(1)(a) of the final draft regulatory technical standards on risk-mitigation techniques for OTC-derivative contracts not cleared by a CCP under Article 11(15) of EMIR dated March 8, 2016 (the “EMIR RTS”) for so long as such {{isdaprov|Transaction}}s are subject to the transitional exemption from the variation margin requirements under Article 39(6) of the EMIR RTS and<br>
(ii) a single stock equity option or index option {{isdaprov|Transaction}} as referred to in Article 39(7) of the EMIR RTS for so long as such {{isdaprov|Transaction}}s are subject to the transitional exemption from the variation margin requirements under Article 39(7) of the EMIR RTS.]<br>
[“Physically Settled FX Forward” means [...]]<br>
[“Physically Settled FX Swap” means [...]]<br>
[“Security-Based Swap” means a “security-based swap” as defined in Section 3(a)(68) of the U.S. Securities Exchange Act of 1934, as amended (“SEA”), and the rules adopted thereunder. For the avoidance of doubt, the term “Security-Based Swap” does not include a security-based swap that has been cleared by a “clearing agency,” as such term is defined in Section 3(a)(23) of the SEA and the rules adopted thereunder.]<br>
[“Swap” means a “swap” as defined in Section 1a(47) of the U.S. Commodity Exchange Act, as amended (“CEA”), and the regulations adopted thereunder. For the avoidance of doubt, the term “Swap” does not include a swap that has been cleared by a “derivatives clearing organization,” as such term is defined in Section 1a(15) of the CEA and the regulations adopted thereunder.]<br>
[For the purposes of the foregoing, a {{isdaprov|Transaction}} will be deemed to be entered into on or after the date specified in this Paragraph 13(b)(i) if an amendment, novation or other lifecycle event with respect to such {{isdaprov|Transaction}} would cause such {{isdaprov|Transaction}} to be entered into after such date under law applicable to either party requiring the collection or delivery of variation margin.]*<br>
(ii) The term “'''{{nyvmcsaprov|Obligations}}'''” as used in this Annex includes the following additional obligations:<br>
With respect to Party A: [...]<br>
With respect to Party B: [...]<br>
(iii) “'''{{nyvmcsaprov|{{nyvmcsaprov|Exposure}}'''” has the meaning specified in Paragraph {{nyvmcsaprov|12)}}, unless otherwise specified here: [...]<br>
(c) {{nyvmcsaprov|Credit Support Obligations}}.<br>
(i) {{nyvmcsaprov|Delivery Amount (VM) and Return Amount (VM)}}.<br>
(A) “'''{{nyvmcsaprov|Delivery Amount (VM)}}'''” has the meaning specified in Paragraph 3(a), unless otherwise specified here: [...]<br>
(B) “'''{{nyvmcsaprov|Return Amount (VM)}}'''” has the meaning specified in Paragraph 3(b), unless otherwise specified here: [...]<br>
(ii) {{nyvmcsaprov|Eligible Collateral (VM)}}. Subject to Paragraph 11(g), if applicable, and each {{nyvmcsaprov|Credit Support Eligibility Condition (VM))}} applicable to it specified in Paragraph {{nyvmcsaprov|13}}, if any, the following items will qualify as “'''{{nyvmcsaprov|Eligible Collateral (VM)}}'''” for the party specified (as the {{nyvmcsaprov|Pledgor}}):<br>
 
<br>
Party A Valuation Percentage <br>
Party B Valuation Percentage
(A) {{nyvmcsaprov|Cash}} in an {{nyvmcsaprov|Eligible Currency}} [ ] [ ]% [ ] [ ]%
(B) other: [ ] [ ]% [ ] [ ]%
(iii) {{nyvmcsaprov|Legally Ineligible Credit Support (VM)}}. The provisions of Paragraph 11(g) will not apply to the [party/parties] specified here (as the {{nyvmcsaprov|Secured Party}}):**<br>
[ ] Party A [ ] Party B<br>
(A) “'''{{nyvmcsaprov|Total Ineligibility Date}}'''” has the meaning specified in Paragraph 11(g), unless otherwise specified here [...]<br>
(B) “{{nyvmcsaprov|Transfer}} Ineligibility Date” has the meaning specified in Paragraph 11(g), unless otherwise specified here: [...]<br>
(iv) Credit Support Eligibility Conditions (VM). The following conditions will each be a “'''{{nyvmcsaprov|Credit Support Eligibility Condition (VM)}}'''” for the party specified. Any item will not qualify as {{nyvmcsaprov|Eligible Collateral (VM)}} for a party (as the {{nyvmcsaprov|Pledgor}}) if such item does not satisfy each {{nyvmcsaprov|Credit Support Eligibility Condition (VM))}} applicable to it.<br>
[[...] ]<br>
[[...] ]<br>
(v) “'''{{nyvmcsaprov|Valuation Percentage}}'''”; “'''{{nyvmcsaprov|FX Haircut Percentage}}'''”<br>
(A) “'''{{nyvmcsaprov|Valuation Percentage}}'''” means, with respect to each party (as the {{nyvmcsaprov|Pledgor}}) and item of {{nyvmcsaprov|Eligible Collateral (VM)}}, the percentage (expressed as a decimal) specified in Paragraph 13(c)(ii); provided that if<br>
<br>
<br>
nothing is specified in Paragraph 13(c)(ii), the Valuation Percentage will be 100% unless otherwise specified below. The Valuation Percentage for either party and any item of {{nyvmcsaprov|Eligible Collateral (VM)}} will further be subject to the terms and conditions, if any, specified below as applicable to such party and item:<br>
[...]<br>
[If at any time the Valuation Percentage assigned to an item of {{nyvmcsaprov|Eligible Collateral (VM)}} with respect to a party (as the {{nyvmcsaprov|Pledgor}}) under this Annex is greater than the maximum permitted valuation percentage (prescribed or implied) for such item of collateral under any law requiring the collection of variation margin applicable to the other party (as the {{nyvmcsaprov|Secured Party}}), then the Valuation Percentage with respect to such item of {{nyvmcsaprov|Eligible Collateral (VM)}} and such party will be such maximum permitted valuation percentage.]*<br>
(B) “'''{{nyvmcsaprov|FX Haircut Percentage}}'''” means, with respect to each party (as the {{nyvmcsaprov|Pledgor}}) and item of {{nyvmcsaprov|Eligible Collateral (VM)}}, [[8]%, unless the {{nyvmcsaprov|Eligible Collateral (VM)}} or {{nyvmcsaprov|Posted Collateral (VM)}} is in the form of {{nyvmcsaprov|Cash}} [in a Major Currency] or is denominated in a currency that matches [an {{nyvmcsaprov|Eligible Currency}}], in which case the '''{{nyvmcsaprov|FX Haircut Percentage)}}''' will be 0%.]<br>
[As used above, “Major Currency” means any of: (1) United States Dollar; (2) Canadian Dollar;<br>
(3) Euro; (4) United Kingdom Pound; (5) Japanese Yen; (6) Swiss Franc; (7) New Zealand Dollar;<br>
(8) Australian Dollar; (9) Swedish Kronor; (10) Danish Kroner; (11) Norwegian Krone or any other currency specified below:<br>
[ [...]]]**<br>
(vi) {{nyvmcsaprov|Other Eligible Support (VM)}}. The following items will qualify as “'''{{nyvmcsaprov|Other Eligible Support (VM)}}'''” for the party specified (as the {{nyvmcsaprov|Pledgor}}):<br>
 
Party A Party B
(A) [...] [ ] [ ]
(B) [...] [ ] [ ]
(vii) {{nyvmcsaprov|Minimum Transfer Amount}}.<br>
(A) “'''{{nyvmcsaprov|Minimum Transfer Amount}}'''” means with respect to Party A: $ [...]<br>
“'''{{nyvmcsaprov|Minimum Transfer Amount}}'''” means with respect to Party B: $ [...]<br>
(B) Rounding. The {{nyvmcsaprov|Delivery Amount (VM)}} and the {{nyvmcsaprov|Return Amount (VM)}} will be rounded up and down respectively to the nearest integral multiple of $ [...]<br>
(viii) {{nyvmcsaprov|Transfer}} Timing. “Regular Settlement Day” has the meaning specified in Paragraph {{nyvmcsaprov|12)}}, unless otherwise specified here: ………………………………………………………………………………………...<br>
(d) {{nyvmcsaprov|Valuation and Timing}}.<br>
(i) “'''{{nyvmcsaprov|Valuation Agent}}'''” means, for purposes of Paragraphs 3 and 5, the party making the demand under Paragraph 3, and, for purposes of Paragraph 6(d), the {{nyvmcsaprov|Secured Party}}, as applicable, unless otherwise specified here: [...]<br>
(ii) “'''{{nyvmcsaprov|Valuation Date}}'''” has the meaning specified in Paragraph {{nyvmcsaprov|12)}}, unless otherwise specified here: [...]<br>
[...]<br>
<br>
<br>
For purposes of determining the {{nyvmcsaprov|Valuation Date}} and clause (iii) of the definition of “'''{{nyvmcsaprov|Local Business Day}}'''” in Paragraph {{nyvmcsaprov|12)}}, “'''{{nyvmcsaprov|Valuation Date Location}}'''”* means, with respect to each party, each city, region, or country specified below:<br>
Party A: [...]<br>
Party B: [...]<br>
(iii) “'''{{nyvmcsaprov|Valuation Time}}'''” has the meaning specified in Paragraph {{nyvmcsaprov|12)}}, unless otherwise specified here: [...]<br>
[...]<br>
(iv) “'''{{nyvmcsaprov|Notification Time}}'''” means 10:00 a.m., New York time, on a {{nyvmcsaprov|Local Business Day}}, unless otherwise specified here: [...]<br>
[...]<br>
(e) {{nyvmcsaprov|Conditions Precedent and Secured Party’s Rights and Remedies}}.<br>
(i) The provisions of Paragraph {{nyvmcsaprov|4(a)}} will apply, unless otherwise specified here: [...]<br>
[...]<br>
(ii) If the provisions of Paragraph {{nyvmcsaprov|4(a)}} are applicable, the following Termination Event(s) will be a “'''{{nyvmcsaprov|Specified Condition}}'''” for the party specified (that party being the {{isdaprov|Affected Party}} if the Termination Event occurs with respect to that party):<br>
 
Party A Party B
Illegality [ ] [ ]
Force Majeure Event** [ ] [ ]
Tax Event [ ] [ ]
Tax Event Upon Merger [ ] [ ]
Credit Event Upon Merger [ ] [ ]
Additional Termination Event(s): [ ] [ ]
(f) Substitution.<br>
(i) “'''{{nyvmcsaprov|Substitution Date}}'''” has the meaning specified in Paragraph 4(d)(ii), unless otherwise specified here: [...]<br>
(ii) Consent. If specified here as applicable, then the {{nyvmcsaprov|Pledgor}} must obtain the {{nyvmcsaprov|Secured Party}}’s consent for any substitution pursuant to Paragraph 4(d): [applicable/inapplicable]***<br>
(g) {{nyvmcsaprov|Dispute Resolution}}.<br>
(i) “'''{{nyvmcsaprov|Resolution Time}}'''” means 1:00 p.m., New York time, on the {{nyvmcsaprov|Local Business Day}} following the date on which the notice is given that gives rise to a dispute under Paragraph 5, unless otherwise specified here: [...]<br>
(ii) {{nyvmcsaprov|Value}}. For the purpose of Paragraphs 5(iv)(A)(3) and 5(iv)(B), the {{nyvmcsaprov|Value}} of {{nyvmcsaprov|Posted Credit Support (VM)}} will be calculated as follows: [...]<br>
(iii) Alternative. The provisions of Paragraph 5 will apply, unless an alternative {{nyvmcsaprov|Dispute Resolution}} procedure is specified here: [...]<br>
<br>
<br>
* If applicable, a party can specify more than one {{nyvmcsaprov|Valuation Date Location}}.<br>
** Include if the relevant ISDA Master Agreement is an ISDA 2002 Master Agreement.<br>
*** Parties should consider selecting “applicable” where substitution without consent could give rise to a registration requirement to perfect properly the security interest in Posted Collateral (e.g., where a party to the Annex is the New York branch of an English bank).<br>
(h) {{nyvmcsaprov|Holding and Using Posted Collateral (VM)}}.<br>
(i) Eligibility to Hold {{nyvmcsaprov|Posted Collateral (VM)}}; Custodians (VM). Party A and its {{nyvmcsaprov|Custodian (VM)}} will be entitled to hold {{nyvmcsaprov|Posted Collateral (VM)}} pursuant to Paragraph 6(b); provided that the following conditions applicable to it are satisfied:<br>
(1) Party A is not a {{isdaprov|Defaulting Party}}.<br>
(2) [...] Initially, the {{nyvmcsaprov|Custodian (VM)}} for Party A is [...]<br>
[...]<br>
Party B and its {{nyvmcsaprov|Custodian (VM)}} will be entitled to hold {{nyvmcsaprov|Posted Collateral (VM)}} pursuant to Paragraph 6(b);<br>
provided that the following conditions applicable to it are satisfied:<br>
(1) Party B is not a {{isdaprov|Defaulting Party}}.<br>
(2) [...] Initially, the {{nyvmcsaprov|Custodian (VM)}} for Party B is [...]<br>
[...]<br>
(ii) Use of {{nyvmcsaprov|Posted Collateral (VM)}}. The provisions of Paragraph 6(c) will not apply to the [party/parties*] specified here:<br>
[ ] Party A [ ] Party B<br>
and [that party/those parties*] will not be permitted to: [...]<br>
(i) {{nyvmcsaprov|Distributions and Interest Payment (VM)}}.<br>
(i) {{nyvmcsaprov|Interest Rate (VM)}}. The “'''{{nyvmcsaprov|Interest Rate (VM)}}'''” in relation to each {{nyvmcsaprov|Eligible Currency}} specified below will be:<br>
 
{{nyvmcsaprov|Eligible Currency}} {{nyvmcsaprov|Interest Rate (VM)}} A/365 Currency
[...] [...] [...]
[...] [...] [...]
[...] [...] [...]
(ii) {{nyvmcsaprov|Transfer of Interest Payment (VM) or application of Interest Amount (VM)}}.<br>
Interest {{nyvmcsaprov|Transfer}}: [Applicable/Not Applicable]<br>
Interest Payment Netting: [Applicable/Not Applicable]<br>
[The {{nyvmcsaprov|Transfer}} of an {{nyvmcsaprov|Interest Payment (VM)}} by the {{nyvmcsaprov|Interest Payer (VM)}} will be made on [the last {{nyvmcsaprov|Local Business Day}} of each calendar month] [and on any {{nyvmcsaprov|Local Business Day}} that a {{nyvmcsaprov|Return Amount (VM)}} consisting wholly or partly of {{nyvmcsaprov|Cash}} is {{nyvmcsaprov|Transfer}}red to the {{nyvmcsaprov|Pledgor}} pursuant to Paragraph 3(b)]. The {{nyvmcsaprov|Transfer}} of an {{nyvmcsaprov|Interest Payment (VM)}} by the {{nyvmcsaprov|Interest Payer (VM)}} will be made on [the last {{nyvmcsaprov|Local Business Day}} of each calendar month] [and on any {{nyvmcsaprov|Local Business Day}} that a {{nyvmcsaprov|Delivery Amount (VM)}} consisting wholly or partly of {{nyvmcsaprov|Cash}} is {{nyvmcsaprov|Transfer}}red to the {{nyvmcsaprov|Secured Party}} pursuant to Paragraph 3(a)].]<br>
{{nyvmcsaprov|Interest Adjustment}}: [Applicable/Not Applicable]<br>
<br>
<br>
<br>
* Delete as applicable.<br>
[The {{nyvmcsaprov|Posted Collateral (VM)}} will be adjusted by the {{nyvmcsaprov|Secured Party}} on [the last {{nyvmcsaprov|Local Business Day}} of each calendar month][each day].]<br>
(iii) Other Interest Elections.<br>
{{nyvmcsaprov|Negative Interest}}: [Applicable/Not Applicable]<br>
{{nyvmcsaprov|Daily Interest Compounding}}: [Applicable/Not Applicable]<br>
(iv) Alternative to {{nyvmcsaprov|Interest Amount (VM)}} and {{nyvmcsaprov|Interest Payment (VM)}}. The provisions of Paragraph 6(d)(ii) will apply, unless otherwise specified here: [...]<br>
[...]<br>
(j) {{nyvmcsaprov|Credit Support Offsets}}.<br>
If specified here as applicable, then the “{{nyvmcsaprov|Credit Support Offsets}}” provisions in Paragraph 11(j) of this Annex will apply: [applicable/inapplicable].<br>
(k) Additional Representation(s).<br>
[Party A/Party B] represents to the other party (which representation(s) will be deemed to be repeated as of each date on which it, as the {{nyvmcsaprov|Pledgor}}, {{nyvmcsaprov|Transfer}}s {{nyvmcsaprov|Eligible Collateral (VM)}}) that:<br>
(i) [...]<br>
(ii) [...]<br>
(l) {{nyvmcsaprov|Other Eligible Support (VM) and Other Posted Support (VM)}}.<br>
(i) “'''{{nyvmcsaprov|Value}}'''” with respect to {{nyvmcsaprov|Other Eligible Support (VM)}} and {{nyvmcsaprov|Other Posted Support (VM)}} means: [...]<br>
[...]<br>
(ii) “'''{{nyvmcsaprov|Transfer}}'''” with respect to {{nyvmcsaprov|Other Eligible Support (VM)}} and {{nyvmcsaprov|Other Posted Support (VM)}} means: [...]<br>
[...]<br>
(m) {{nyvmcsaprov|Demands and Notices}}.<br>
All demands, specifications and notices under this Annex will be made pursuant to the Notices Section of this Agreement, unless otherwise specified here:<br>
Party A: [...]<br>
[...]<br>
Party B: [...]<br>
[...]<br>
(n) Addresses for {{nyvmcsaprov|Transfer}}s.<br>
Party A: [...]<br>
[...]<br>
Party B: [...]<br>
[...]<br>
(o) “'''{{nyvmcsaprov|Other CSA}}'''” has the meaning specified in Paragraph {{nyvmcsaprov|12)}}, unless otherwise specified here: …………………...<br>
[...]<br>
(p) Other Provisions.<br>
(q)
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