Acceptable Hedging Arrangement

Acceptable Hedging Arrangement. A hedging arrangement entered into by the Collection Agent or UAFCC, between UAFCC and a swap counterparty whose long term debt obligations are rated investment grade by Moody's Investors Service and Standard & Poor's, in compliance with Section 5.3 of the Security Agreement, that locks in a fixed spread of at least 600 basis points lower than the weighted average APR for the Eligible Receivables based upon an amortization schedule ... determined using a 1.60% ABS prepayment assumption or such other prepayment assumption that Moody's and Standard & Poor's have been previously been notified of, it being understood that funds on deposit in a prefunding account established in connection with a Securitization will qualify as an Acceptable Hedging Arrangement so long as the weighted average coupon of the securities issued in connection with such Securitization is at least 600 basis points lower than the weighted average APR for the Eligible Receivables and only to the extent such funds on deposit in a prefunding account are not serving as a hedge arrangement for any other UA C facility or program. View More