Document ID: chunk:federal_register_of_legislation:F2023L01671:clause:2_12
Version: federal_register_of_legislation:F2023L01671
Segment Type: clause
Provision Reference: sch 2 cl 12
Character Range: 13487–14092

12  Derivatives
  The Facility may only acquire a derivative where:
 (a) it is a more effective means of achieving an effective hedge than less complex mechanisms; and
 (b) the costs of derivative risk are considered and priced into the Alternative Financing Mechanism; and
 (c) the counter-party's credit profile is considered appropriate; and
 (d) the expected benefits, financial or otherwise, are sufficient to outweigh the level of risk and associated costs of acquiring a derivative.
             Note: The limitations in this section may apply in addition to those in subsection 7(1C) of the Act.