Template:Nutshell 2002 ISDA Close-out Amount: Difference between revisions

From The Jolly Contrarian
Jump to navigation Jump to search
No edit summary
No edit summary
Line 1: Line 1:
“'''{{isdaprov|Close-out Amount}}'''” means the {{isdaprov|Expenses}} the {{isdaprov|Determining Party}} would incur (positive) or gains it would realise (negative) in replacing the material terms and the option rights of the parties in respect of the {{isdaprov|Terminated Transaction}}, determined by the {{isdaprov|Determining Party}} as of the {{isdaprov|Early Termination Date}} in {{tag|good faith}} and in a {{tag|commercially reasonable}} manner. <br>
“'''{{isdaprov|Close-out Amount}}'''” means the {{isdaprov|Expenses}} the {{isdaprov|Determining Party}} would incur (positive) or gains it would realise (negative) in replacing the material terms and the option rights of the parties under a {{isdaprov|Terminated Transaction}}, determined as of the {{isdaprov|Early Termination Date}} in {{tag|good faith}} and in a {{tag|commercially reasonable}} manner. The {{isdaprov|Determining Party}} may determine {{isdaprov|Close-out Amount}}s for groups of {{isdaprov|Terminated Transactions}} as long as all {{isdaprov|Terminated Transactions}} are accounted for. <br>
The {{isdaprov|Determining Party}} may determine {{isdaprov|Close-out Amount}}s for groups of {{isdaprov|Terminated Transactions}} as long as all {{isdaprov|Terminated Transactions}} are accounted for. <br>
{{isdaprov|Unpaid Amounts}} and {{isdaprov|Expenses}} in respect of {{isdaprov|Terminated Transaction}}s are '''excluded'''  from the {{isdaprov|Close-out Amount}} calculation. <br />
 
The {{isdaprov|Determining Party}} may consider any of the following (unless it thinks they aren't available or woiuyld produce an unconscionable result): <br>
{{isdaprov|Unpaid Amounts}} and {{isdaprov|Expenses}} in respect of {{isdaprov|Terminated Transaction}}s are '''excluded'''  from the {{isdaprov|Close-out Amount}} calculation. The {{isdaprov|Determining Party}} may consider any of the following (unless it thinks they aren't available or woiuyld produce an unconscionable result): <br>
:(i) quotations for replacement transactions that factor in the {{isdaprov|Determining Party}}'s creditworthiness and the ISDA terms between the {{isdaprov|Determining Party}} and the quoting party; <br>  
:(i) quotations for replacement transactions that factor in the {{isdaprov|Determining Party}}'s creditworthiness and the ISDA terms between the {{isdaprov|Determining Party}} and the quoting party; <br>  
(ii) third party market data; or <br>
(ii) third party market data; or <br>
(iii) internal quotes or market data if used by the {{isdaprov|Determining Party}} in the regular course to value similar transactions. <br>
(iii) internal quotes or market data if used by the {{isdaprov|Determining Party}} in the regular course to value similar transactions. <br>

Revision as of 18:16, 22 December 2015

Close-out Amount” means the Expenses the Determining Party would incur (positive) or gains it would realise (negative) in replacing the material terms and the option rights of the parties under a Terminated Transaction, determined as of the Early Termination Date in good faith and in a commercially reasonable manner. The Determining Party may determine Close-out Amounts for groups of Terminated Transactions as long as all Terminated Transactions are accounted for.
Unpaid Amounts and Expenses in respect of Terminated Transactions are excluded from the Close-out Amount calculation.
The Determining Party may consider any of the following (unless it thinks they aren't available or woiuyld produce an unconscionable result):

(i) quotations for replacement transactions that factor in the Determining Party's creditworthiness and the ISDA terms between the Determining Party and the quoting party;

(ii) third party market data; or
(iii) internal quotes or market data if used by the Determining Party in the regular course to value similar transactions.