View source for Template:2014 ISDA Credit Derivatives Definitions 3

{{toc cdd|3|Terms Relating to Obligations and Deliverable Obligations}}
{{2014 ISDA Credit Derivatives Definitions 3.1}}
{{2014 ISDA Credit Derivatives Definitions 3.2}}
{{2014 ISDA Credit Derivatives Definitions 3.3}}
{{2014 ISDA Credit Derivatives Definitions 3.4}}
{{2014 ISDA Credit Derivatives Definitions 3.5}}
{{2014 ISDA Credit Derivatives Definitions 3.6}}
{{2014 ISDA Credit Derivatives Definitions 3.7}}
{{2014 ISDA Credit Derivatives Definitions 3.8}}
{{2014 ISDA Credit Derivatives Definitions 3.9}}
{{2014 ISDA Credit Derivatives Definitions 3.10}}
{{2014 ISDA Credit Derivatives Definitions 3.11}}
{{2014 ISDA Credit Derivatives Definitions 3.12}}
{{2014 ISDA Credit Derivatives Definitions 3.13}}
{{2014 ISDA Credit Derivatives Definitions 3.14}}
{{2014 ISDA Credit Derivatives Definitions 3.15}}
{{2014 ISDA Credit Derivatives Definitions 3.16}}
{{2014 ISDA Credit Derivatives Definitions 3.17}}
{{2014 ISDA Credit Derivatives Definitions 3.18}}
{{2014 ISDA Credit Derivatives Definitions 3.19}}
{{2014 ISDA Credit Derivatives Definitions 3.20}}
{{2014 ISDA Credit Derivatives Definitions 3.21}}
{{2014 ISDA Credit Derivatives Definitions 3.22}}
{{2014 ISDA Credit Derivatives Definitions 3.23}}
{{2014 ISDA Credit Derivatives Definitions 3.24}}
{{2014 ISDA Credit Derivatives Definitions 3.25}}
{{2014 ISDA Credit Derivatives Definitions 3.26}}
{{2014 ISDA Credit Derivatives Definitions 3.27}}
{{2014 ISDA Credit Derivatives Definitions 3.28}}
{{2014 ISDA Credit Derivatives Definitions 3.29}}
{{2014 ISDA Credit Derivatives Definitions 3.30}}
{{2014 ISDA Credit Derivatives Definitions 3.31}}
{{2014 ISDA Credit Derivatives Definitions 3.32}}
{{2014 ISDA Credit Derivatives Definitions 3.33}}


'''Section {{cddprov|3.25}} {{cddprov|Permitted Transfer}}'''. “'''{{cddprov|Permitted Transfer}}'''” means, with respect to a {{cddprov|Qualifying Guarantee}}, a transfer to and the assumption by any single transferee of such {{cddprov|Qualifying Guarantee}} (including by way of cancellation and execution of a new guarantee) on the same or substantially the same terms, in circumstances where there is also a transfer of all (or substantially all) of the assets of the {{cddprov|Reference Entity}} to the same single transferee.<br>
'''Section {{cddprov|3.26}} {{cddprov|Fixed Cap}}'''. “'''{{cddprov|Fixed Cap}}'''” means, with respect to a Guarantee, a specified numerical limit or cap on the liability of the {{cddprov|Reference Entity}} in respect of some or all payments due under the {{cddprov|Underlying Obligation}}, provided that a {{cddprov|Fixed Cap}} shall exclude a limit or cap determined by reference to a formula with one or more variable inputs (and for these purposes, the outstanding principal or other amounts payable pursuant to the {{cddprov|Underlying Obligation}} shall not be considered to be variable inputs).<br>
'''Section {{cddprov|3.27}} {{cddprov|Qualifying Affiliate Guarantee}}'''. “'''{{cddprov|Qualifying Affiliate Guarantee}}'''” means a {{cddprov|Qualifying Guarantee}} provided by the {{cddprov|Reference Entity}} in respect of an {{cddprov|Underlying Obligation}} of a {{cddprov|Downstream Affiliate}} of the {{cddprov|Reference Entity}}.<br>
'''Section {{cddprov|3.28}} {{cddprov|Downstream Affiliate}}'''. “'''{{cddprov|Downstream Affiliate}}'''” means an entity whose outstanding Voting Shares were, at the date of issuance of the {{cddprov|Qualifying Guarantee}}, more than fifty per cent-owned, directly or indirectly, by the {{cddprov|Reference Entity}}.<br>
'''Section {{cddprov|3.29}} Voting Shares'''. “'''{{cddprov|Voting Shares}}'''” means the shares or other interests that have the power to elect the board of directors or similar governing body of an entity.<br>
'''Section {{cddprov|3.30}} Guarantee'''. “'''{{cddprov|Guarantee}}'''” means a {{cddprov|Relevant Guarantee}} or a guarantee which is the {{cddprov|Reference Obligation}} .<br>
'''Section {{cddprov|3.31}} Section '''{{cddprov|3.31}}. Mod R.<br>
:(a) If (i) “'''{{cddprov|Physical Settlement}}'''” is specified to be the {{cddprov|Settlement Method}} in the related {{cddprov|Confirmation}} (or is applicable as the {{cddprov|Fallback Settlement Method}} in accordance with Section {{cddprov|6.1}} ({{cddprov|Auction Settlement}})), (ii) “'''{{cddprov|Mod R}}'''” is specified as applicable in the related {{cddprov|Confirmation}} and (iii) {{cddprov|Restructuring}} is the only {{cddprov|Credit Event}} specified in a {{cddprov|Credit Event Notice}} delivered by Buyer, then unless the {{cddprov|Deliverable Obligation}} is a {{cddprov|Prior Deliverable Obligation}} and {{cddprov|Asset Package Delivery}} applies due to a {{cddprov|Governmental Intervention}}, a {{cddprov|Deliverable Obligation}} may only be specified (or deemed specified pursuant to Section {{cddprov|9.8}}(i) (Alternative Procedures Relating to Loans Not Delivered)) in the {{cddprov|Notice of Physical Settlement}} or in any {{cddprov|NOPS Amendment Notice}}, as applicable, if such {{cddprov|Deliverable Obligation}} (A) is a {{cddprov|Fully Transferable Obligation}} and (B) has a final maturity date not later than the applicable {{cddprov|Restructuring Maturity Limitation Date}}, in each case, as of both the {{cddprov|NOPS Effective Date}} and the {{cddprov|Delivery Date}}.<br>
:(b) “'''{{cddprov|Fully Transferable Obligation}}'''” means a {{cddprov|Deliverable Obligation}} that is either Transferable, in the case of Bonds, or capable of being assigned or novated to all Eligible Transferees without the consent of any person being required, in the case of any {{cddprov|Deliverable Obligation}} other than Bonds, in each case, as of both the {{cddprov|NOPS Effective Date}} and the {{cddprov|Delivery Date}}. Any requirement that notification of novation, assignment or transfer of a {{cddprov|Deliverable Obligation}} be provided to a trustee, fiscal agent, administrative agent, clearing agent or paying agent for a {{cddprov|Deliverable Obligation}} shall not be considered to be a requirement for consent for purposes of Section {{cddprov|3.31}}.<br>
:(c) “'''{{cddprov|Restructuring Maturity Limitation Date}}'''” means, with respect to a {{cddprov|Deliverable Obligation}}, the {{cddprov|Limitation Date}} occurring on or immediately following the {{cddprov|Scheduled Termination Date}} . Notwithstanding the foregoing, if the final maturity date of the {{cddprov|Restructured Bond}} or Loan with the latest final maturity date of any {{cddprov|Restructured Bond}} or Loan occurs prior to the {{cddprov|2.5}}-year {{cddprov|Limitation Date}} (such {{cddprov|Restructured Bond}} or Loan, a “'''{{cddprov|Latest Maturity Restructured Bond or Loan}}'''”) and the {{cddprov|Scheduled Termination Date}} occurs prior to the final maturity date of such Latest Maturity {{cddprov|Restructured Bond}} or Loan, then the {{cddprov|Restructuring Maturity Limitation Date}} will be the final maturity date of such Latest Maturity {{cddprov|Restructured Bond}} or Loan.<br>
:(d) “'''{{cddprov|Eligible Transferee}}'''” means:<br>
::(i) Any<br>
:::(A) bank or other financial institution;<br>
:::(B) insurance or reinsurance company;<br>
:::(C) mutual fund, unit trust or similar collective investment vehicle (other than an entity described in Section {{cddprov|3.31}}(d)(iii)(A)); and<br>
:::(D) registered or licensed broker or dealer (other than a natural person or proprietorship), provided, however, in each case that such entity has total assets of at least USD 500,000,000; <br>
::(ii) an Affiliate of an entity specified in Section {{cddprov|3.31}}(d)(i); <br>
::(iii) each of a corporation, partnership, proprietorship, organization, trust or other entity:<br>
:::(A) that is an investment vehicle (including, without limitation, any hedge fund, issuer of collateralized debt obligations, commercial paper conduit or other special purpose vehicle) that (I) has total assets of at least USD 100,000,000 or (II) is one of a group of investment vehicles under common control or management having, in aggregate, total assets of at least USD 100,000,000;<br>
:::(B) that has total assets of at least USD 500,000,000; or<br>
:::(C) the obligations of which under an agreement, contract or transaction are guaranteed or otherwise supported by a letter of credit or keepwell, support or other agreement by an entity described in Sections {{cddprov|3.31}}(d)(i), (ii), (iii)(B) or (iv ); or<br>
::(iv) <br>
:::(A) any Sovereign; or<br>
:::(B) any entity or organization established by treaty or other arrangement between two or more Sovereigns including, without limiting the foregoing, the International Monetary Fund, European Central Bank, International Bank for Reconstruction and Development and European Bank for Reconstruction and Development.<br>
All references in Section {{cddprov|3.31}}(d) to USD include equivalent amounts in other currencies, as determined by the Calculation Agent.<br>
'''Section {{cddprov|3.32}} Section '''{{cddprov|3.32}}. Mod Mod R.<br>
:(a) If (i) “'''{{cddprov|Physical Settlement}}'''” is specified to be the {{cddprov|Settlement Method}} in the related {{cddprov|Confirmation}} (or is applicable as the {{cddprov|Fallback Settlement Method}} in accordance with Section {{cddprov|6.1}} ({{cddprov|Auction Settlement}})), (ii) “'''{{cddprov|Mod Mod R}}'''” is specified as applicable in the related {{cddprov|Confirmation}} and (iii) {{cddprov|Restructuring}} is the only {{cddprov|Credit Event}} specified in a {{cddprov|Credit Event Notice}} delivered by Buyer, then unless the {{cddprov|Deliverable Obligation}} is a {{cddprov|Prior Deliverable Obligation}} and {{cddprov|Asset Package Delivery}} applies due to a {{cddprov|Governmental Intervention}}, a {{cddprov|Deliverable Obligation}} may only be specified (or deemed specified pursuant to Section {{cddprov|9.8}}(i) (Alternative Procedures Relating to Loans Not Delivered)) in the {{cddprov|Notice of Physical Settlement}} or in any {{cddprov|NOPS Amendment Notice}}, as applicable, if it (A) is a {{cddprov|Conditionally Transferable Obligation}} and (B) has a final maturity date not later than the applicable Modified {{cddprov|Restructuring Maturity Limitation Date}}, in each case, as of both the {{cddprov|NOPS Effective Date}} and the {{cddprov|Delivery Date}}. Notwithstanding the foregoing, for purposes of Section {{cddprov|3.32}}(a), in the case of a {{cddprov|Restructured Bond}} or Loan with a final maturity date on or prior to the 10year {{cddprov|Limitation Date}}, the final maturity date of such {{cddprov|Bond or Loan}} shall be deemed to be the earlier of such final maturity date or the final maturity date of such {{cddprov|Bond or Loan}} immediately prior to the relevant {{cddprov|Restructuring}}.<br>
:(b) “'''{{cddprov|Conditionally Transferable Obligation}}'''” means a {{cddprov|Deliverable Obligation}} that is either Transferable, in the case of Bonds, or capable of being assigned or novated to all {{cddprov|Modified Eligible Transferee}}s without the consent of any person being required, in the case of any {{cddprov|Deliverable Obligation}} other than Bonds, in each case, as of both the {{cddprov|NOPS Effective Date}} and the {{cddprov|Delivery Date}}, provided, however, that a {{cddprov|Deliverable Obligation}} other than Bonds will be a {{cddprov|Conditionally Transferable Obligation}} notwithstanding that consent of the {{cddprov|Reference Entity}} or the guarantor, if any, of a {{cddprov|Deliverable Obligation}} other than Bonds (or the consent of the relevant obligor if the {{cddprov|Reference Entity}} is guaranteeing such {{cddprov|Deliverable Obligation}}) or any agent is required for such novation, assignment or transfer so long as the terms of such {{cddprov|Deliverable Obligation}} provide that such consent may not be unreasonably withheld or delayed. Any requirement that notification of novation, assignment or transfer of a {{cddprov|Deliverable Obligation}} be provided to a trustee, fiscal agent, administrative agent, clearing agent or paying agent for a {{cddprov|Deliverable Obligation}} shall not be considered to be a requirement for consent for purposes of Section {{cddprov|3.32}}(b).<br>
:(c) If Section {{cddprov|3.32}}(a) applies and the {{cddprov|Deliverable Obligation}} specified in the {{cddprov|Notice of Physical Settlement}} (or in any {{cddprov|NOPS Amendment Notice}}, as applicable) is a {{cddprov|Conditionally Transferable Obligation}} with respect to which consent is required to novate, assign or transfer and the requisite consent is refused (whether or not a reason is given for such refusal and, where a reason is given for such refusal, regardless of that reason), or is not received by the {{cddprov|Physical Settlement Date}} (in which case it shall be deemed to have been refused), {{cddprov|Buyer}} shall promptly notify {{cddprov|Seller}} of such refusal (or deemed refusal) and:<br>
::(i) Section {{cddprov|11.2}}(c)(iv) (Additional Representations and Agreements for Physical Settlement) shall apply with respect to {{cddprov|Seller}} as the designator, provided, however, that the designee need not be an Affiliate of {{cddprov|Seller}}; and<br>
::(ii) if {{cddprov|Seller}} does not designate a third party that takes Delivery on or prior to the {{cddprov|Loan Alternative Procedure Start Date}}, then Section {{cddprov|9.8}} (Alternative Procedures Relating to Loans Not Delivered) shall apply.<br>
:(d) “'''{{cddprov|Modified Restructuring Maturity Limitation Date}}'''” means, with respect to a {{cddprov|Deliverable Obligation}}, the {{cddprov|Limitation Date}} occurring on or immediately following the {{cddprov|Scheduled Termination Date}}.<br>
Subject to the foregoing, if the {{cddprov|Scheduled Termination Date}} is later than the 10-year {{cddprov|Limitation Date}}, the Modified {{cddprov|Restructuring Maturity Limitation Date}} will be the {{cddprov|Scheduled Termination Date}}.<br>
:(e) “'''{{cddprov|Modified Eligible Transferee}}'''” means any bank, financial institution or other entity which is regularly engaged in or established for the purpose of making, purchasing or investing in loans, securities and other financial assets.<br>
'''Section {{cddprov|3.33}} General Terms Relating to Mod R and Mod Mod R'''.<br>
:(a) “'''{{cddprov|Limitation Date}}'''” means the first of March 20, June 20, September 20 or December 20 in any year to occur on or immediately following the date that is one of the following numbers of years after the {{cddprov|Restructuring}} Date: {{cddprov|2.5}} years (the “'''{{cddprov|2.5-year {{cddprov|Limitation Date}}'''”), 5 years, {{cddprov|7.5}} years, 10 years (the “'''{{cddprov|10-year {{cddprov|Limitation Date}}'''”), {{cddprov|12.5}} years, 15 years, or 20 years , as applicable. {{cddprov|Limitation Date}}s shall not be subject to adjustment in accordance with any {{cddprov|Business Day Convention}} .<br>
:(b) “'''{{cddprov|Restructured Bond or Loan}}'''” means an Obligation that is a {{cddprov|Bond or Loan}} and in respect of which the relevant {{cddprov|Restructuring}} has occurred.<br>
:(c) “'''{{cddprov|Restructuring Date}}'''” means the date on which a {{cddprov|Restructuring}} is legally effective in accordance with the terms of the documentation governing such {{cddprov|Restructuring}}.<br>
:(d) For the purposes of making a determination pursuant to Sections {{cddprov|3.31}} (Mod R) and {{cddprov|3.32}} (Mod Mod R), final maturity date shall, subject to Section {{cddprov|3.32}}(a) (Mod Mod R), be determined on the basis of the terms of the {{cddprov|Deliverable Obligation}} in effect at the time of making such determination and, in the case of a {{cddprov|Deliverable Obligation}} that is due and payable, the final maturity date shall be deemed to be the date on which such determination is made.<br>