Monetary protection clause

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A monetary safeguard clause in a loan agreement stipulates that the borrower has to provide his cash payments (interest and amortization payments) when due in amounts of money that are sufficient to either purchase a certain amount of a real good (e.g. gold), or optionally several real goods ( e.g. gold or silver) or several real goods in a certain ratio to each other (e.g. gold plus silver or raw copper plus rubber plus tin) or a certain amount of a currency (e.g. Swiss francs), optionally several currencies ( e.g. Swiss francs or Japanese yen) or several currencies in a certain ratio to one another (e.g. Swiss francs plus Japanese yen plus US dollars). It is not intended to actually buy these real goods or currencies.