Following is a sample confirmation for an interest rate cap transaction, without commentary. A sample confirmation with commentary can be found in 188.8.131.52 "Interest rate cap confirmation with commentary".
[Letterhead of Party A]
Reference Number [ ]
[Name and Address of Party B]
Rate Cap Transaction
The purpose of this letter is to confirm the terms and conditions of the Rate Cap Transaction entered into between us on the Trade Date specified below (the "Rate Cap Transaction"). This letter constitutes a "Confirmation" as referred to in the Master Agreement specified below.
The definitions and provisions contained in the 2006 ISDA Definitions (as published by the International Swap Dealers Association, Inc) are incorporated into this Confirmation. In the event of any inconsistency between those definitions and provisions and this Confirmation, this Confirmation will govern.
1. This Confirmation supplements, forms part of, and is subject to, the Master Agreement dated as of [date] as amended and supplemented from time to time (the "Agreement") between you and us. All provisions contained in the Agreement govern this Confirmation except as expressly modified below. The Rate Cap Transaction is a "Transaction" for the purpose of the Agreement.
2. The terms of the Rate Cap Transaction are as follows:
Termination Date: [, subject to adjustment in accordance with the [Following/ Modified Following/ Preceding] Business Day Convention]
Fixed Rate Payer:
Fixed Rate Payer
Payment Date(s): [, subject to adjustment in accordance with the [Following/ Modified Following/ Preceding] Business Day Convention]
[Fixed Rate Day
Floating Rate Payer:
Cap Rate: %
Floating Rate Payer
Payment Dates: [subject to adjustment in accordance with the [Following/ Modified Following/ Preceding] Business Day Convention]
Floating Rate Option:
Floating Rate Day
Reset Dates: [subject to adjustment in accordance with the [Following/ Modified Following/ Preceding] Business Day Convention]
[Business Day Convention: [Following/Modified Following/Preceding]]
3. Account Details
Payments to Fixed Rate Payer:
Payments to Floating Rate Payer:
[4. Office: ]
Please confirm that the foregoing correctly sets forth the terms of our agreement by executing the copy of this Confirmation enclosed for that purpose and returning it to us.
[name of party preparing Confirmation]
Confirmed as of the date first written:
[name of other party]
Last Update Date 29 Jun 2011