respect of a project for purposes of financing
of that project;
"subordination"
means, in relation to a borrower, that a debt
(or class of debt) of that borrower ranks, in
priority of payment, lower than other debt (or
classes of debt) of the borrower and,
accordingly the borrower will not repay the
debt (or class of debt) to the other relevant
lender(s) (the subordinated or junior
lender(s)) until such other debt (or classes of
debt) has/have been repaid to such other
relevant lender(s) (the senior lender(s)), and
"subordinated" shall have a corresponding
meaning;
"swap"
means a transaction concluded between two
or more counter parties which is aimed at
managing the risk of, among other things,
interest rate or currency fluctuations. In a
simple currency swap the counter parties
agree sell to each a currency with a
commitment to re-exchange the principal
amount at the maturity of the transaction. In
an interest rate swap the counter parties
agree to exchange periodic
interest
payments. Swaps may permit a counter
party to more effectively manage its debt;
"syndication"
means an arrangement which, in respect of
a debt of a borrower, provides for multiple
(or a group of) lenders (syndicate lenders},
and which ordinarily provides for each such
syndicate lender to incur only such
obligations as relate to that portion of that
debt which is owed by that borrower to that
syndicate lender;
88
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