View source for Template:2014 ISDA Credit Derivatives Definitions 4

{{toc cdd|4|Credit Events}}
{{2014 ISDA Credit Derivatives Definitions 4.1}}
{{2014 ISDA Credit Derivatives Definitions 4.2}}
{{2014 ISDA Credit Derivatives Definitions 4.3}}
{{2014 ISDA Credit Derivatives Definitions 4.4}}
{{2014 ISDA Credit Derivatives Definitions 4.5}}
{{2014 ISDA Credit Derivatives Definitions 4.6}}
{{2014 ISDA Credit Derivatives Definitions 4.7}}
{{2014 ISDA Credit Derivatives Definitions 4.8}}
{{2014 ISDA Credit Derivatives Definitions 4.9}}
{{2014 ISDA Credit Derivatives Definitions 4.10}}
{{2014 ISDA Credit Derivatives Definitions 4.11}}





'''Section {{cddprov|4.7}} {{cddprov|Restructuring}}'''.<br>
:(a) “'''{{cddprov|Restructuring}}'''” means that, with respect to one or more Obligations and in relation to an aggregate amount of not less than the {{cddprov|Default Requirement}}, any one or more of the following events occurs in a form that binds all holders of such Obligation, is agreed between the {{cddprov|Reference Entity}} or a {{cddprov|Governmental Authority}} and a sufficient number of holders of such Obligation to bind all holders of the Obligation or is announced (or otherwise decreed) by the {{cddprov|Reference Entity}} or a {{cddprov|Governmental Authority}} in a form that binds all holders of such Obligation (including, in each case, in respect of Bonds only, by way of an exchange), and such event is not expressly provided for under the terms of such Obligation in effect as of the later of the {{cddprov|Credit Event Backstop Date}} and the date as of which such Obligation is issued or incurred:<br>
::(i) a reduction in the rate or amount of interest payable or the amount of scheduled interest accruals (including by way of redenomination);<br>
::(ii) a reduction in the amount of principal or premium payable at redemption (including by way of redenomination);<br>
::(iii) a postponement or other deferral of a date or dates for either (A) the payment or accrual of interest, or (B) the payment of principal or premium;<br>
::(iv) a change in the ranking in priority of payment of any Obligation, causing the Subordination of such Obligation to any other Obligation; or<br>
::(v) any change in the currency of any payment of interest, principal or premium to any currency other than the lawful currency of Canada, Japan, Switzerland, the United Kingdom and the United States of America and the euro and any successor currency to any of the aforementioned currencies (which in the case of the euro, shall mean the currency which succeeds to and replaces the euro in whole).<br>
:(b) Notwithstanding the provisions of Section {{cddprov|4.7}}(a), none of the following shall constitute a {{cddprov|Restructuring}}:<br>
::(i) the payment in euros of interest, principal or premium in relation to an Obligation denominated in a currency of a Member State of the European Union that adopts or has adopted the single currency in accordance with the Treaty establishing the European Community, as amended by the Treaty on European Union;<br>
::(ii) the redenomination from euros into another currency, if (A) the redenomination occurs as a result of action taken by a {{cddprov|Governmental Authority}} of a Member State of the European Union which is of general application in the jurisdiction of such {{cddprov|Governmental Authority}} and (B) a freely available market rate of conversion between euros and such other currency existed at the time of such redenomination and there is no reduction in the rate or amount of interest, principal or premium payable, as determined by reference to such freely available market rate of conversion;<br>
::(iii) the occurrence of, agreement to or announcement of any of the events described in Section {{cddprov|4.7}}(a)(i) to (v) due to an administrative adjustment, accounting adjustment or tax adjustment or other technical adjustment occurring in the ordinary course of business; and<br>
::(iv) the occurrence of, agreement to or announcement of any of the events described in Sections {{cddprov|4.7}}(a)(i) to (v) in circumstances where such event does not directly or indirectly result from a deterioration in the creditworthiness or financial condition of the {{cddprov|Reference Entity}}, provided that in respect of Section {{cddprov|4.7}}(a)(v) only, no such deterioration in the creditworthiness or financial condition of the {{cddprov|Reference Entity}} is required where the redenomination is from euros into another currency and occurs as a result of action taken by a {{cddprov|Governmental Authority}} of a Member State of the European Union which is of general application in the jurisdiction of such {{cddprov|Governmental Authority}}.<br>
:(c) For purposes of Sections {{cddprov|4.7}}(a), {{cddprov|4.7}}(b) and {{cddprov|4.10}} ({{cddprov|Multiple Holder Obligation}}), the term Obligation shall be deemed to include {{cddprov|Underlying Obligation}}s for which the {{cddprov|Reference Entity}} is acting as provider of a Guarantee. In the case of a Guarantee and an {{cddprov|Underlying Obligation}}, references to the {{cddprov|Reference Entity}} in Section {{cddprov|4.7}}(a) shall be deemed to refer to the {{cddprov|Underlying Obligor}} and the reference to the {{cddprov|Reference Entity}} in Section {{cddprov|4.7}}(b) shall continue to refer to the {{cddprov|Reference Entity}}.<br>
:(d) If an exchange has occurred, the determination as to whether one of the events described under Sections {{cddprov|4.7}}(a)(i) to (v) has occurred will be based on a comparison of the terms of the Bond immediately prior to such exchange and the terms of the resulting obligations immediately following such exchange.<br>
'''Section {{cddprov|4.8}} {{cddprov|Governmental Intervention}}'''.<br>
:(a) “'''{{cddprov|Governmental Intervention}}'''” means that, with respect to one or more Obligations and in relation to an aggregate amount of not less than the {{cddprov|Default Requirement}}, any one or more of the following events occurs as a result of action taken or an announcement made by a {{cddprov|Governmental Authority}} pursuant to, or by means of, a restructuring and resolution law or regulation (or any other similar law or regulation), in each case, applicable to the {{cddprov|Reference Entity}} in a form which is binding, irrespective of whether such event is expressly provided for under the terms of such Obligation:<br>
::(i) any event which would affect creditors’ rights so as to cause:<br>
:::(A) a reduction in the rate or amount of interest payable or the amount of scheduled interest accruals (including by way of redenomination);<br>
:::(B) a reduction in the amount of principal or premium payable at redemption (including by way of redenomination);<br>
:::(C) a postponement or other deferral of a date or dates for either (I) the payment or accrual of interest, or (II) the payment of principal or premium; or<br>
:::(D) a change in the ranking in priority of payment of any Obligation, causing the Subordination of such Obligation to any other Obligation;<br>
::(ii) an expropriation, transfer or other event which mandatorily changes the beneficial holder of the Obligation;<br>
::(iii) a mandatory cancellation, conversion or exchange; or<br>
::(iv) any event which has an analogous effect to any of the events specified in Sections {{cddprov|4.8}}(a)(i) to (iii).<br>
:(b) For purposes of Section {{cddprov|4.8}}(a), the term Obligation shall be deemed to include {{cddprov|Underlying Obligation}}s for which the {{cddprov|Reference Entity}} is acting as provider of a Guarantee.<br>
'''Section {{cddprov|4.9}} Certain Definitions Relating to {{cddprov|Credit Event}}s'''.<br>
:(a) “'''{{cddprov|Default Requirement}}'''” means the amount specified as such in the related {{cddprov|Confirmation}} or its equivalent in the relevant {{cddprov|Obligation Currency}} (or, if no such amount is specified, USD 10,000,000 or its equivalent in the relevant {{cddprov|Obligation Currency}}) in either case, as of the occurrence of the relevant {{cddprov|Credit Event}}.<br>
:(b) “'''{{cddprov|Governmental Authority}}'''” means:<br>
::(i) any de facto or de jure government (or any agency, instrumentality, ministry or department thereof);<br>
::(ii) any court, tribunal, administrative or other governmental, inter-governmental or supranational body;<br>
::(iii) any authority or any other entity (private or public) either designated as a resolution authority or charged with the regulation or supervision of the financial markets (including a central bank) of the {{cddprov|Reference Entity}} or some or of all of its obligations; or<br>
::(iv) any other authority which is analogous to any of the entities specified in Sections {{cddprov|4.9}}(b)(i) to (iii).<br>
:(c) “'''{{cddprov|Obligation Currency}}'''” means the currency or currencies in which an Obligation is denominated.<br>
:(d) “'''{{cddprov|Payment Requirement}}'''” means the amount specified as such in the related {{cddprov|Confirmation}} or its equivalent in the relevant {{cddprov|Obligation Currency}} (or, if no such amount is specified, USD 1,000,000 or its equivalent in the relevant {{cddprov|Obligation Currency}}) in either case as of the occurrence of the relevant {{cddprov|Failure to Pay}} or Potential {{cddprov|Failure to Pay}}, as applicable.<br>
'''Section {{cddprov|4.10}} {{cddprov|Multiple Holder Obligation}}'''.<br>
:(a) Unless “'''{{cddprov|Multiple Holder Obligation}}'''” is specified as not applicable in the related Confirmation, then, notwithstanding anything to the contrary in Section {{cddprov|4.7}} ({{cddprov|Restructuring}}), the occurrence of, agreement to or announcement of any of the events described in Sections {{cddprov|4.7}}(a)(i) to (v) ({{cddprov|Restructuring}}) shall not be a {{cddprov|Restructuring}} unless the Obligation in respect of any such events is a {{cddprov|Multiple Holder Obligation}}.<br>
:(b) “'''{{cddprov|Multiple Holder Obligation}}'''” means an Obligation that (i) at the time of the event which constitutes a {{cddprov|Restructuring}} {{cddprov|Credit Event}} is held by more than three holders that are not Affiliates of each other and (ii) with respect to which a percentage of holders (determined pursuant to the terms of the Obligation as in effect on the date of such event) at least equal to sixty-six-and-two-thirds is required to consent to the event which constitutes a {{cddprov|Restructuring}} {{cddprov|Credit Event}} provided that any Obligation that is a Bond shall be deemed to satisfy the requirement in Section {{cddprov|4.10}}(b)(ii).<br>
'''Section {{cddprov|4.11}} Redenomination'''. If an occurrence that would constitute a {{cddprov|Failure to Pay}} (a) is a result of a redenomination that occurs as a result of action taken by a {{cddprov|Governmental Authority}} which is of general application in the jurisdiction of such {{cddprov|Governmental Authority}} and (b) a freely available market rate of conversion existed at the time of the redenomination, then such occurrence will be deemed not to constitute a {{cddprov|Failure to Pay}} unless the redenomination itself constituted a reduction in the rate or amount of interest, principal or premium payable (as determined by reference to such freely available market rate of conversion) at the time of such redenomination.  <br>