2016 ISDA VM NY CSA: Difference between revisions

Accordingly, the parties agree as follows:—<br> Paragraph {{{{nyvmcsaprov|1}} '''{{nyvmcsaprov|Interpretation}}'''<br> :{{{{nyvmcsaprov|1(a)}} '''{{nyvmcsaprov|Definitions and Inconsistency)}}'''. Capitalized terms not otherwise defined herein or elsewhere in this Agreement have the meanings specified pursuant to Paragraph {{nyvmcsaprov|12)}}, and all references in this Annex to Paragraphs are to Paragraphs of this Annex. In the event of any inconsistency between this Annex and the other provisions of this Schedule, this Annex will prevail, and in the event of any inconsistency between Paragraph {{nyvmcsaprov|13 }} and the other provisions of this Annex, Paragraph {{nyvmcsaprov|13 }} will prevail.<br>

:{{{{nyvmcsaprov|1(b)}} {{nyvmcsaprov|Secured Party and Pledgor}}. All references in this Annex to the “'''{{nyvmcsaprov|Secured Party}}'''” will be to either party when acting in that capacity and all corresponding references to the “'''{{nyvmcsaprov|Pledgor}}'''” will be to the other party when acting in that capacity; provided, however, that if {{nyvmcsaprov|Other Posted Support (VM)}} is held by a party to this Annex, all references herein to that party as the {{nyvmcsaprov|Secured Party}} with respect to that {{nyvmcsaprov|Other Posted Support (VM)}} will be to that party as the beneficiary thereof and will not subject that support or that party as the beneficiary thereof to provisions of law generally relating to security interests and secured parties.<br> :{{{{nyvmcsaprov|1(c)}} {{nyvmcsaprov|Scope of this Annex and the Other CSA}}. The only {{isdaprov|Transaction)}}s which will be relevant for the purposes of determining “'''{{nyvmcsaprov|Exposure}}'''” under this Annex will be the {{nyvmcsaprov|Covered Transactions}} specified in Paragraph '''{{nyvmcsaprov|13}}'''. Each {{nyvmcsaprov|Other CSA}}, if any, is hereby amended such that the {{isdaprov|Transaction)}}s that will be relevant for purposes of determining “'''{{nyvmcsaprov|Exposure}}'''” thereunder, if any, will exclude the {{nyvmcsaprov|Covered Transactions}}. Except as provided in Paragraphs 8(a), 8(b) and 11(j), nothing in this Annex will affect the rights and obligations, if any, of either party with respect to “independent amounts” or initial margin under each {{nyvmcsaprov|Other CSA}}, if any, with respect to {{isdaprov|Transaction)}}s that are {{nyvmcsaprov|Covered Transactions}}.<br> Paragraph {{{{nyvmcsaprov|2}} '''{{nyvmcsaprov|Security Interest}}'''<br>

Each party, as the {{nyvmcsaprov|Pledgor}}, hereby pledges to the other party, as the {{nyvmcsaprov|Secured Party}}, as security for its {{isdaprov|Obligations}}, and grants to the {{nyvmcsaprov|Secured Party}} a first priority continuing security interest in, lien on and right of {{nyvmcsaprov|Set-off}} against all {{nyvmcsaprov|Posted Collateral (VM)}} {{nyvmcsaprov|Transfer}}red to or received by the {{nyvmcsaprov|Secured Party}} hereunder. Upon the {{nyvmcsaprov|Transfer}} by the {{nyvmcsaprov|Secured Party}} to the {{nyvmcsaprov|Pledgor}} of {{nyvmcsaprov|Posted Collateral (VM)}}, the security interest and lien granted hereunder on that {{nyvmcsaprov|Posted Collateral (VM)}} will be released immediately and, to the extent possible, without any further action by either party.<br> Paragraph {{{{nyvmcsaprov|3}} '''{{nyvmcsaprov|Credit Support Obligations}}''' <br> :{{{{nyvmcsaprov|3(a)}} {{nyvmcsaprov|Delivery Amount (VM)}}. Subject to Paragraphs 4 and 5, upon a demand made by the {{nyvmcsaprov|Secured Party}} on or promptly following a {{nyvmcsaprov|Valuation Date}}, if the {{nyvmcsaprov|Delivery Amount (VM)}} for that {{nyvmcsaprov|Valuation Date}} equals or exceeds the {{nyvmcsaprov|Pledgor}}’s {{nyvmcsaprov|Minimum Transfer Amount}}, then the {{nyvmcsaprov|Pledgor}} will {{nyvmcsaprov|Transfer}} to the {{nyvmcsaprov|Secured Party}} {{nyvmcsaprov|Eligible Credit Support (VM)}} having a {{nyvmcsaprov|Value}} as of the date of {{nyvmcsaprov|Transfer}} at least equal to the applicable {{nyvmcsaprov|Delivery Amount (VM)}} (rounded pursuant to Paragraph {{nyvmcsaprov|13}}). Unless otherwise specified in Paragraph {{nyvmcsaprov|13}}, the “'''{{nyvmcsaprov|Delivery Amount (VM)}}'''” applicable to the {{nyvmcsaprov|Pledgor}} for any {{nyvmcsaprov|Valuation Date}} will equal the amount by which:<br>

(ii) the {{nyvmcsaprov|Value}} as of that {{nyvmcsaprov|Valuation Date}} of all {{nyvmcsaprov|Posted Credit Support (VM)}} held by the {{nyvmcsaprov|Secured Party}}.<br> :{{{{nyvmcsaprov|3(b)}} {{nyvmcsaprov|Return Amount (VM)}}. Subject to Paragraphs 4 and 5, upon a demand made by the {{nyvmcsaprov|Pledgor}} on or promptly following a {{nyvmcsaprov|Valuation Date}}, if the {{nyvmcsaprov|Return Amount (VM)}} for that {{nyvmcsaprov|Valuation Date}} equals or exceeds the {{nyvmcsaprov|Secured Party}}’s {{nyvmcsaprov|Minimum Transfer Amount}}, then the {{nyvmcsaprov|Secured Party}} will {{nyvmcsaprov|Transfer}} to the {{nyvmcsaprov|Pledgor}} {{nyvmcsaprov|Posted Credit Support (VM)}} specified by the {{nyvmcsaprov|Pledgor}} in that demand having a {{nyvmcsaprov|Value}} as of the date of {{nyvmcsaprov|Transfer}} as close as practicable to the applicable {{nyvmcsaprov|Return Amount (VM)}} (rounded pursuant to Paragraph {{nyvmcsaprov|13}}). Unless otherwise specified in Paragraph {{nyvmcsaprov|13}}, the “'''{{nyvmcsaprov|Return Amount}}'''” applicable to the {{nyvmcsaprov|Secured Party}} for any {{nyvmcsaprov|Valuation Date}} will equal the amount by which:<br>

(ii) the {{nyvmcsaprov|Secured Party}}’s {{nyvmcsaprov|Exposure}}.<br> Paragraph {{{{nyvmcsaprov|4}} '''{{nyvmcsaprov|Conditions Precedent, Transfer Timing, Calculations and Substitutions}}'''<br> :{{{{nyvmcsaprov|4(a)}} '''{{nyvmcsaprov|Conditions Precedent}}'''. Unless otherwise specified in Paragraph {{nyvmcsaprov|13}}, each {{nyvmcsaprov|Transfer}} obligation of the {{nyvmcsaprov|Pledgor}} under Paragraphs 3, 5 and 6(d) and of the {{nyvmcsaprov|Secured Party}} under Paragraphs 3, 4(d)(ii), 5, 6(d) and 11(h) is subject to the conditions precedent that:<br>

(ii) no {{isdaprov|Early Termination Date)}} for which any unsatisfied payment obligations exist has occurred or been designated as the result of an {{isdaprov|Event of Default)}} or {{nyvmcsaprov|Specified Condition}} with respect to the other party.<br> :{{{{nyvmcsaprov|4(b)}} '''{{nyvmcsaprov|Transfer Timing}}'''. Subject to Paragraphs 4(a) and 5 and unless otherwise specified in Paragraph {{nyvmcsaprov|13}}, if a demand for the {{nyvmcsaprov|Transfer}} of {{nyvmcsaprov|Eligible Credit Support (VM)}} or {{nyvmcsaprov|Posted Credit Support (VM)}} is made by the Paragraph {{nyvmcsaprov|Notification Time}}, then the relevant {{nyvmcsaprov|Transfer}} will be made not later than the close of business on the {{nyvmcsaprov|Regular Settlement Day}}; if a demand is made after the Paragraph {{nyvmcsaprov|Notification Time}}, then the relevant {{nyvmcsaprov|Transfer}} will be made not later than the close of business on the next {{nyvmcsaprov|Local Business Day}} following the {{nyvmcsaprov|Regular Settlement Day}}.<br> :{{{{nyvmcsaprov|4(c)}} '''{{nyvmcsaprov|Calculations}}'''. All calculations of {{nyvmcsaprov|Value}} and {{nyvmcsaprov|Exposure}} for purposes of Paragraphs 3 and 6(d) will be made by the {{nyvmcsaprov|Valuation Agent}} as of the {{nyvmcsaprov|Valuation Time}}; provided that the {{nyvmcsaprov|Valuation Agent}} may use, in the case of any calculation of (i) {{nyvmcsaprov|Value}}, {{nyvmcsaprov|Value}}s most recently reasonably available for close of business in the relevant market for the relevant {{nyvmcsaprov|Eligible Credit Support (VM)}} as of the {{nyvmcsaprov|Valuation Time}} and (ii) {{nyvmcsaprov|Exposure}}, relevant information or data most recently reasonably available for close of business in the relevant market(s) as of the {{nyvmcsaprov|Valuation Time}}. The {{nyvmcsaprov|Valuation Agent}} will notify each party (or the other party, if the {{nyvmcsaprov|Valuation Agent}} is a party) of its calculations not later than the Paragraph {{nyvmcsaprov|Notification Time}} on the {{nyvmcsaprov|Local Business Day}} following the applicable {{nyvmcsaprov|Valuation Date}} (or in the case of Paragraph 6(d), following the date of calculation).<br> :{{{{nyvmcsaprov|4(d)}} '''{{nyvmcsaprov|Substitutions}}'''.<br>

(ii) subject to Paragraph {{nyvmcsaprov|4(a)}}, the {{nyvmcsaprov|Secured Party}} will {{nyvmcsaprov|Transfer}} to the {{nyvmcsaprov|Pledgor}} the items of {{nyvmcsaprov|Posted Credit Support (VM)}} specified by the {{nyvmcsaprov|Pledgor}} in its notice not later than the {{nyvmcsaprov|Local Business Day}} following the date on which the {{nyvmcsaprov|Secured Party}} receives the {{nyvmcsaprov|Substitute Credit Support (VM)}}, unless otherwise specified in Paragraph {{nyvmcsaprov|13 }} (the “'''{{nyvmcsaprov|Substitution Date}}'''”); provided that the {{nyvmcsaprov|Secured Party}} will only be obligated to {{nyvmcsaprov|Transfer}} {{nyvmcsaprov|Posted Credit Support (VM)}} with a {{nyvmcsaprov|Value}} as of the date of {{nyvmcsaprov|Transfer}} of that {{nyvmcsaprov|Posted Credit Support (VM)}} equal to the {{nyvmcsaprov|Value}} as of that date of the {{nyvmcsaprov|Substitute Credit Support (VM)}}.<br> Paragraph {{{{nyvmcsaprov|5}} '''{{nyvmcsaprov|Dispute Resolution}}'''<br>

(iv) if they fail to resolve the dispute by the {{nyvmcsaprov|Resolution Time}}, then:<br> :::{{{{nyvmcsaprov|5(a)(iv)(A)}} In the case of a dispute involving a {{nyvmcsaprov|Delivery Amount (VM)}} or Return Amount (VM), unless otherwise specified in Paragraph {{nyvmcsaprov|13}}, the {{nyvmcsaprov|Valuation Agent}} will recalculate the {{nyvmcsaprov|Exposure}} and the {{nyvmcsaprov|Value}} as of the Recalculation Date by:<br> ::::{{{{nyvmcsaprov|5(a)(iv)(A)(I)}} utilizing any calculations of {{nyvmcsaprov|Exposure}} for the {{nyvmcsaprov|Covered Transactions}} that the parties have agreed are not in dispute;<br> ::::{{{{nyvmcsaprov|5(a)(iv)(A)(II)}} (I) if this Agreement is a 1992 ISDA Master Agreement, calculating the {{nyvmcsaprov|Exposure}} for the {{nyvmcsaprov|Covered Transactions}} in dispute by seeking four actual quotations at mid-market from Reference Market-makers for purposes of calculating Market Quotation, and taking the arithmetic average of those obtained, or (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, calculating the {{nyvmcsaprov|Exposure}} for the {{nyvmcsaprov|Covered Transactions}} in dispute by seeking four actual quotations at mid-market from third parties for purposes of calculating the relevant Close-out Amount, and taking the arithmetic average of those obtained; provided that, in either case, if four quotations are not available for a particular Covered {{isdaprov|Transaction)}}, then fewer than four quotations may be used for that Covered {{isdaprov|Transaction)}}, and if no quotations are available for a particular Covered {{isdaprov|Transaction)}}, then the {{nyvmcsaprov|Valuation Agent}}'s original calculations will be used for that Covered {{isdaprov|Transaction)}}; and<br> ::::{{{{nyvmcsaprov|5(a)(iv)(A)(III)}} utilizing the procedures specified in Paragraph {{nyvmcsaprov|13 }} for calculating the {{nyvmcsaprov|Value}}, if disputed, of {{nyvmcsaprov|Posted Credit Support (VM)}}.<br> :::{{{{nyvmcsaprov|5(a)(iv)(B)}} In the case of a dispute involving the {{nyvmcsaprov|Value}} of any {{nyvmcsaprov|Transfer}} of {{nyvmcsaprov|Eligible Credit Support (VM)}} or {{nyvmcsaprov|Posted Credit Support (VM)}}, the {{nyvmcsaprov|Valuation Agent}} will recalculate the {{nyvmcsaprov|Value}} as of the date of {{nyvmcsaprov|Transfer}} pursuant to Paragraph {{nyvmcsaprov|13}}.<br>

Following a recalculation pursuant to this Paragraph, the {{nyvmcsaprov|Valuation Agent}} will notify each party (or the other party, if the {{nyvmcsaprov|Valuation Agent}} is a party) not later than the Paragraph {{nyvmcsaprov|Notification Time}} on the {{nyvmcsaprov|Local Business Day}} following the {{nyvmcsaprov|Resolution Time}}. The appropriate party will, upon demand following that notice by the {{nyvmcsaprov|Valuation Agent}} or a resolution pursuant to (iii) above and subject to Paragraphs 4(a) and 4(b), make the appropriate {{nyvmcsaprov|Transfer}}.<br> Paragraph {{{{nyvmcsaprov|6}} '''{{nyvmcsaprov|Holding and Using Posted Collateral (VM)}}'''<br> :{{{{nyvmcsaprov|6(a)}} '''{{nyvmcsaprov|Care of Posted Collateral (VM)}}'''. Without limiting the {{nyvmcsaprov|Secured Party}}’s rights under Paragraph 6(c), the {{nyvmcsaprov|Secured Party}} will exercise reasonable care to assure the safe custody of all {{nyvmcsaprov|Posted Collateral (VM)}} to the extent required by applicable law, and in any event the {{nyvmcsaprov|Secured Party}} will be deemed to have exercised reasonable care if it exercises at least the same degree of care as it would exercise with respect to its own property. Except as specified in the preceding sentence, the {{nyvmcsaprov|Secured Party}} will have no duty with respect to {{nyvmcsaprov|Posted Collateral (VM)}}, including, without limitation, any duty to collect any {{nyvmcsaprov|Distributions}}, or enforce or preserve any rights pertaining thereto.<br>

(a) '''{{nyvmcsaprov|Eligibility to Hold Posted Collateral (VM); Custodians (VM)}}'''.<br> :{{{{nyvmcsaprov|6(b)}} '''General'''. Subject to the satisfaction of any conditions specified in Paragraph {{nyvmcsaprov|13 }} for holding {{nyvmcsaprov|Posted Collateral (VM)}}, the {{nyvmcsaprov|Secured Party}} will be entitled to hold {{nyvmcsaprov|Posted Collateral (VM)}} or to appoint an agent (a “'''{{nyvmcsaprov|Custodian (VM)}}'''”) to hold {{nyvmcsaprov|Posted Collateral (VM)}} for the {{nyvmcsaprov|Secured Party}}. Upon notice by the {{nyvmcsaprov|Secured Party}} to the {{nyvmcsaprov|Pledgor}} of the appointment of a {{nyvmcsaprov|Custodian (VM)}}, the {{nyvmcsaprov|Pledgor}}’s obligations to make any {{nyvmcsaprov|Transfer}} will be discharged by making the {{nyvmcsaprov|Transfer}} to that {{nyvmcsaprov|Custodian (VM)}}. The holding of {{nyvmcsaprov|Posted Collateral (VM)}} by a {{nyvmcsaprov|Custodian (VM)}} will be deemed to be the holding of that {{nyvmcsaprov|Posted Collateral (VM)}} by the {{nyvmcsaprov|Secured Party}} for which the {{nyvmcsaprov|Custodian (VM)}} is acting.<br>

(ii) '''Liability'''. The {{nyvmcsaprov|Secured Party}} will be liable for the acts or omissions of its {{nyvmcsaprov|Custodian (VM)}} to the same extent that the {{nyvmcsaprov|Secured Party}} would be liable hereunder for its own acts or omissions.<br> :{{{{nyvmcsaprov|6(c)}} {{nyvmcsaprov|Use of Posted Collateral (VM)}}. Unless otherwise specified in Paragraph {{nyvmcsaprov|13}} and without limiting the rights and obligations of the parties under Paragraphs {{nyvmcsaprov|3}}, {{nyvmcsaprov|4(d)(ii)}}, {{nyvmcsaprov|5}}, {{nyvmcsaprov|6(d)}} and {{nyvmcsaprov|8}}, if the {{nyvmcsaprov|Secured Party}} is not a {{isdaprov|Defaulting Party}} or an {{isdaprov|Affected Party}} with respect to a {{nyvmcsaprov|Specified Condition}} and no {{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 the {{nyvmcsaprov|Secured Party}} will, notwithstanding Section 9-207 of the New York Uniform Commercial Code, have the right to:<br>

For purposes of the obligation to {{nyvmcsaprov|Transfer}} {{nyvmcsaprov|Eligible Credit Support (VM)}} or {{nyvmcsaprov|Posted Credit Support (VM)}} pursuant to Paragraphs 3 and 5 and any rights or remedies authorized under this Agreement, the {{nyvmcsaprov|Secured Party}} will be deemed to continue to hold all {{nyvmcsaprov|Posted Collateral (VM)}} and to receive {{nyvmcsaprov|Distributions}} made thereon, regardless of whether the {{nyvmcsaprov|Secured Party}} has exercised any rights with respect to any {{nyvmcsaprov|Posted Collateral (VM)}} pursuant to (i) or (ii) above.<br> :{{{{nyvmcsaprov|6(d)}} {{nyvmcsaprov|Distributions}}, {{nyvmcsaprov|Interest Amount (VM)}} and {{nyvmcsaprov|Interest Payment (VM)}}.<br>

(ii) {{nyvmcsaprov|Interest Amount (VM)}} and {{nyvmcsaprov|Interest Payment (VM)}}. Unless otherwise specified in Paragraph {{nyvmcsaprov|13 }} and subject to Paragraph {{nyvmcsaprov|4(a)}}, in lieu of any interest, dividends or other amounts paid or deemed to have been paid with respect to {{nyvmcsaprov|Posted Collateral (VM)}} in the form of {{nyvmcsaprov|Cash)}} (all of which may be retained by the {{nyvmcsaprov|Secured Party}}),<br> :::{{{{nyvmcsaprov|6(d)(ii)(A)}} if “Interest {{nyvmcsaprov|Transfer}}” is specified as applicable in Paragraph {{nyvmcsaprov|13}}, the {{nyvmcsaprov|Interest Payer (VM)}} will {{nyvmcsaprov|Transfer}} to the {{nyvmcsaprov|Interest Payee (VM)}}, at the times specified in Paragraph {{nyvmcsaprov|13}}, the relevant {{nyvmcsaprov|Interest Payment (VM)}}; provided that if “Interest Payment Netting” is specified as applicable in Paragraph {{nyvmcsaprov|13}}: <br> ::::{{{{nyvmcsaprov|6(d)(ii)(A)(I)}} if the {{nyvmcsaprov|Interest Payer (VM)}} is entitled to demand a {{nyvmcsaprov|Delivery Amount (VM)}} or {{nyvmcsaprov|Return Amount (VM)}}, in respect of the date such {{nyvmcsaprov|Interest Payment (VM)}} is required to be {{nyvmcsaprov|Transfer}}red:<br> :::::{{{{nyvmcsaprov|6(d)(ii)(A)(I)(a)}} such {{nyvmcsaprov|Delivery Amount (VM)}} or {{nyvmcsaprov|Return Amount (VM)}} will be reduced (but not below zero) by such {{nyvmcsaprov|Interest Payment (VM)}}; provided that, in case of such {{nyvmcsaprov|Return Amount (VM)}}, if the amount of {{nyvmcsaprov|Posted Collateral (VM)}} which is comprised of {{nyvmcsaprov|Cash)}} in the {{nyvmcsaprov|Base Currency}} is less than such {{nyvmcsaprov|Interest Payment (VM)}}, such reduction will only be to the extent of the amount of such {{nyvmcsaprov|Cash)}} which is {{nyvmcsaprov|Posted Collateral (VM)}} (the “'''{{nyvmcsaprov|Eligible Return Amount (VM)}}'''”); and<br> :::::{{{{nyvmcsaprov|6(d)(ii)(A)(I)(b)}} the {{nyvmcsaprov|Interest Payer (VM)}} will {{nyvmcsaprov|Transfer}} to the {{nyvmcsaprov|Interest Payee (VM)}} the amount of the excess, if any, of such {{nyvmcsaprov|Interest Payment (VM)}} over such {{nyvmcsaprov|Delivery Amount (VM)}} or Eligible {{nyvmcsaprov|Return Amount (VM)}}, as applicable; and<br> ::::{{{{nyvmcsaprov|6(d)(ii)(A)(II)}} if under Paragraph {{nyvmcsaprov|6(d)(ii)(A)(I)(a)}} a {{nyvmcsaprov|Delivery Amount (VM)}} is reduced (the amount of such reduction, the “'''{{nyvmcsaprov|Delivery Amount Reduction (VM)}}'''”) or a {{nyvmcsaprov|Return Amount (VM)}} is reduced (the amount of such reduction, the “'''{{nyvmcsaprov|Return Amount Reduction (VM)}}'''”), then for purposes of determining {{nyvmcsaprov|Posted Collateral (VM)}}, the {{nyvmcsaprov|Secured Party}} (a) will be deemed to have received an amount in {{nyvmcsaprov|Cash)}} in the {{nyvmcsaprov|Base Currency}} equal to any{{nyvmcsaprov| Delivery Amount Reduction (VM)}}, and such amount will constitute {{nyvmcsaprov|Posted Collateral (VM)}} in such {{nyvmcsaprov|Cash)}} and will be subject to the security interest granted under Paragraph {{nyvmcsaprov|2}} or (b) will be deemed to have {{nyvmcsaprov|Transfer}}red an amount in {{nyvmcsaprov|Cash)}} in the {{nyvmcsaprov|Base Currency}} equal to any {{nyvmcsaprov|Return Amount Reduction (VM)}}, as applicable, in each case on the day on which the relevant {{nyvmcsaprov|Interest Payment (VM)}} was due to be {{nyvmcsaprov|Transfer}}red, as applicable; and<br> :::{{{{nyvmcsaprov|6(d)(ii)(B)}} if “'''{{nyvmcsaprov|Interest Adjustment}}'''” is specified as applicable in Paragraph {{nyvmcsaprov|13}}, the {{nyvmcsaprov|Posted Collateral (VM)}} will be adjusted by the {{nyvmcsaprov|Secured Party}}, at the times specified in Paragraph {{nyvmcsaprov|13}}, as follows:<br> ::::{{{{nyvmcsaprov|6(d)(ii)(B)(I)}} if the {{nyvmcsaprov|Interest Amount (VM)}} for an {{nyvmcsaprov|Interest Period}} is a positive number, the {{nyvmcsaprov|Interest Amount (VM)}} will constitute {{nyvmcsaprov|Posted Collateral (VM)}} in the form of {{nyvmcsaprov|Cash)}} in the {{nyvmcsaprov|Base Currency}} and will be subject to the security interest granted under Paragraph {{nyvmcsaprov|2}}; and<br> ::::{{{{nyvmcsaprov|6(d)(ii)(B)(II)}} if the {{nyvmcsaprov|Interest Amount (VM)}} for an {{nyvmcsaprov|Interest Period}} is a negative number and any {{nyvmcsaprov|Posted Collateral (VM)}} is in the form of {{nyvmcsaprov|Cash)}} in the {{nyvmcsaprov|Base Currency}}, the {{nyvmcsaprov|Interest Amount (VM)}} will constitute a reduction of {{nyvmcsaprov|Posted Collateral (VM)}} in the form of such {{nyvmcsaprov|Cash)}} in an amount (such amount, the “'''{{nyvmcsaprov|Interest Adjustment Reduction Amount (VM)}}'''”) equal to the absolute {{nyvmcsaprov|Value}} of the {{nyvmcsaprov|Interest Amount (VM)}}; provided that if the amount of {{nyvmcsaprov|Posted Collateral (VM)}} which is comprised of such {{nyvmcsaprov|Cash)}} is less than the {{nyvmcsaprov|Interest Adjustment Reduction Amount (VM)}}, such reduction will only be to the extent of the amount of such {{nyvmcsaprov|Cash)}} which is {{nyvmcsaprov|Posted Collateral (VM)}} and the {{nyvmcsaprov|Pledgor}} will be obligated to {{nyvmcsaprov|Transfer}} the remainder of the {{nyvmcsaprov|Interest Adjustment Reduction Amount (VM)}} to the {{nyvmcsaprov|Secured Party}} on the day that such reduction occurred.<br> Paragraph {{{{nyvmcsaprov|7}} '''{{nyvmcsaprov|Events of Default)}}'''<br>

For purposes of Section 5(a)(iii)(1) of this Agreement, an {{isdaprov|Event of Default)}} will exist with respect to a party if:<br> :{{{{nyvmcsaprov|(i)}} that party fails (or fails to cause its {{nyvmcsaprov|Custodian (VM)}}) to make, when due, any {{nyvmcsaprov|Transfer}} of {{nyvmcsaprov|Eligible Collateral (VM)}}, {{nyvmcsaprov|Posted Collateral (VM)}} or the {{nyvmcsaprov|Interest Payment (VM)}}, as applicable, required to be made by it and that failure continues for two {{nyvmcsaprov|Local Business Day}}s after notice of that failure is given to that party;<br> :{{{{nyvmcsaprov|(ii)}} that party fails to comply with any restriction or prohibition specified in this Annex with respect to any of the rights specified in Paragraph {{nyvmcsaprov|6(c)}} and that failure continues for five {{nyvmcsaprov|Local Business Day}}s after notice of that failure is given to that party; or<br> :{{{{nyvmcsaprov|(iii)}} that party fails to comply with or perform any agreement or obligation other than those specified in Paragraphs {{nyvmcsaprov|7(i)}} and {{nyvmcsaprov|7(ii)}} and that failure continues for 30 days after notice of that failure is given to that party.<br> Paragraph {{{{nyvmcsaprov|8}} '''{{nyvmcsaprov|Certain Rights and Remedies)}}'''<br> :{{{{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|(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|(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|(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|(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|(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|(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|(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|(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|(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)}} 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)}}'''<br>

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|(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|(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|(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|(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)}}'''<br>

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 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)}}'''<br> :{{{{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|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|(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|(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|(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)}}'''<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|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>

“'''{{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|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|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>

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>

(iii) “'''{{nyvmcsaprov|{{nyvmcsaprov|Exposure}}}}'''” has the meaning specified in Paragraph {{nyvmcsaprov|12)}}, unless otherwise specified here: [...]<br>