Interest Rate Cap

Interest Rate Cap. Interest rate cap agreement

Interest Rate Cap. The "Interest Rate Cap"

Interest Rate Cap. AN INTEREST RATE CAP AGREEMENT (THE "INTEREST RATE CAP") WITH A FINANCIAL INSTITUTION (THE "CAP COUNTERPARTY"), WHICH SHALL AT ALL TIMES DURING THE TERM OF THE INTEREST RATE CAP BE ACCEPTABLE TO THE AGENT AND SHALL HAVE AT ALL TIMES A RATING OF AT LEAST "A3" FROM MOODY'S AND "A-" FROM STANDARD & POOR'S AND WHICH HAS IRREVOCABLY AND UNCONDITIONALLY AGREED THAT, PRIOR TO THE DATE WHICH IS ONE YEAR AND ONE DAY AFTER THE PAYMENT IN FULL OF ALL COMMERCIAL PAPER ISSUED BY THE COMPANY, IT WILL NOT... ACQUIESCE, PETITION OR OTHERWISE INVOKE OR CAUSE THE DEBTOR TO INVOKE THE PROCESS OF ANY GOVERNMENTAL AUTHORITY FOR THE PURPOSE OF COMMENCING OR SUSTAINING A CASE AGAINST THE DEBTOR UNDER ANY FEDERAL OR STATE BANKRUPTCY, INSOLVENCY OR SIMILAR LAW OR APPOINTING A RECEIVER, LIQUIDATOR, ASSIGNEE, TRUSTEE, CUSTODIAN, SEQUESTRATOR OR OTHER SIMILAR OFFICIAL OF THE DEBTOR OR ANY SUBSTANTIAL PART OF ITS PROPERTY OR ORDERING THE WINDING-UP OR LIQUIDATION OF THE AFFAIRS OF THE DEBTOR. THE INTEREST RATE CAP SHALL BE IN FORM AND SUBSTANCE ACCEPTABLE TO THE AGENT AND SHALL PROVIDE (I) THAT ALL AMOUNTS PAYABLE THEREUNDER SHALL BE PAID BY THE CAP COUNTERPARTY DIRECTLY TO THE COLLECTION ACCOUNT, (II) THAT THE DEBTOR'S RIGHTS THEREUNDER HAVE BEEN IRREVOCABLY ASSIGNED TO, AND A SECURITY INTEREST THEREIN HAS BEEN GRANTED TO, THE COLLATERAL AGENT FOR THE BENEFIT OF THE SECURED PARTIES, (III) FOR A STRIKE RATE OF NOT MORE THAN 7.50% PER ANNUM, AND (IV) THAT IT COVERS A NOTIONAL AMOUNT CORRESPONDING TO AN AMORTIZATION SCHEDULE PROVIDED BY THE COLLATERAL AGENT AND ATTACHED HERETO AS EXHIBIT A. View More