Cash - NY VM CSA Provision

2016 ISDA Credit Support Annex (VM) (New York law) A Jolly Contrarian owner’s manual™ Go premium Overview — Summary — Premium — See also — Wikitext Crosscheck: →NY OG →Eng OG →NY VM →EngVM →Eng IM Cash in a Nutshell™ The JC’s Nutshell™ summary of this term has moved uptown to the subscription-only ninja tier. For the cost of ½ a weekly 🍺 you can get it here. Sign up at Substack. Original text: “Cash” means, respectively, the Base Currency and each other Eligible Currency. The varieties of ISDA CSA Subject 1994 NY 1995 Eng 2016 VM NY 2016 VM Eng 2018 IM Eng Preamble Pre Pre Pre Pre Pre Interpretation 1 1 1 1 1 Security Interest 2 - 2 - 2 Credit Support Obligations 3 2 3 2 3 Transfers, Calculations and Exchanges - 3 - 3 - Conditions Precedent, Transfer Timing, Calculations and Substitutions 4 - 4 - 4 Dispute Resolution 5 4 5 4 5 Holding and Using Posted Collateral 6 - 6 - 6 Transfer of Title, No Security Interest - 5 - 5 - Events of Default 7 6 7 6 7 Rights and Remedies 8 - 8 - 8 Representations 9 7 9 7 9 Expenses 10 8 10 8 10 Miscellaneous 11 9 11 9 11 Definitions 12 10 12 10 12 Elections and Variables 13 11 13 11 13 Resources and Navigation Index: Click ᐅ to expand: 1994 NY CSA 1995 CSA 2016 VM CSA

Overview

For the Original Gangsta CSA, there was only one kind of cash: that special folding currency with the odd little pyramid with the eye on the back of it. In the more international-looking versions of the CSA, including later versions of the New York Law CSA, the currency basket is a lot wider.

“Cash” is not a defined term in the title transfer CSAs: the closest you will get is Eligible Currency, which is not a defined term in the OG CSA, but is in the more internationalist 2016 NY Law VM CSA.

Summary

The OG CSA is single currency only

You have to love, don’t you, the preparedness of ISDA’s crack drafting squad™ to contemplate a world in which the lawful currency of the United States might not be the U.S. dollar, given how sacred the U. S. dollar is to our American friends. This from a place that hasn’t changed the fundamental look or the even construction of the greenback since 1935. That’s when they put the pyramid with the all-seeing eye on it. Nothing to see here, folks.

One tres interessant difference between the 1994 NY CSA and the 1995 CSA is that the American version only contemplates a single currency. Because there is only one currency right?

This is what it is — to the extent the constituency trading on a NY CSA are US counterparties that will generally be what they want, and even for those who aren’t, that will generally be what they want, or at least are prepared to put up with, but note it in any case. If you fund in another currency, you might think about using the 2016 NY VM CSA, which does contemplate multiple currencies (but doesn’t contemplate IM) — or at least borrowing some language from it.

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