Template:Nutshell 2002 ISDA 6(e)(ii): Difference between revisions
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Amwelladmin (talk | contribs) Created page with ":{{isdaprov|6(e)(ii)}} '''{{isdaprov|Termination Events}}'''. If the {{isdaprov|Early Termination Date}} results from a {{isdaprov|Termination Event}}:― ::(1) '''One {{isd..." |
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:{{isdaprov|6(e)(ii)}} '''{{isdaprov|Termination Events}}'''. If the {{isdaprov|Early Termination Date}} results from a {{isdaprov|Termination Event}}:― | :{{isdaprov|6(e)(ii)}} '''{{isdaprov|Termination Events}}'''. If the {{isdaprov|Early Termination Date}} results from a {{isdaprov|Termination Event}}:― | ||
::(1) '''One {{isdaprov|Affected Party}}'''. | ::(1) '''One {{isdaprov|Affected Party}}'''. If there is '''one''' {{isdaprov|Affected Party}}, the {{isdaprov|Early Termination Amount}} will be determined as if they were {{isdaprov|Events of Default}} under Section {{isdaprov|6(e)(i)}} (but subject to the {{isdaprov|Mid-Market Events}} rider below). | ||
::(2) '''Two {{isdaprov|Affected Parties}}'''. | ::(2) '''Two {{isdaprov|Affected Parties}}'''. If there are '''two''' {{isdaprov|Affected Parties}}, each party will determine the {{isdaprov|Termination Currency Equivalent}} of the {{isdaprov|Close-out Amounts}} for all {{isdaprov|Terminated Transaction}} and the {{isdaprov|Early Termination Amount}} will be: <br> | ||
:::(A) the sum of <br> | :::(A) the sum of <br> | ||
::::(I) half of the difference between the higher amount (determined by party “'''X'''”) and the lower amount (determined by party “'''Y'''”) and <br> | ::::(I) half of the difference between the higher amount (determined by party “'''X'''”) and the lower amount (determined by party “'''Y'''”) and <br> | ||
::::(II) the {{isdaprov|Termination Currency Equivalent}} of the {{isdaprov|Unpaid Amounts}} owing to X | ::::(II) the {{isdaprov|Termination Currency Equivalent}} of the {{isdaprov|Unpaid Amounts}} owing to X '''minus''' <br> | ||
:::(B) the {{isdaprov|Termination Currency Equivalent}} of the {{isdaprov|Unpaid Amounts}} owing to Y. | :::(B) the {{isdaprov|Termination Currency Equivalent}} of the {{isdaprov|Unpaid Amounts}} owing to Y. | ||
::If the {{isdaprov|Early Termination Amount}} is a positive number, Y will pay it to X; if negative , X will pay its absolute value to Y. | ::If the {{isdaprov|Early Termination Amount}} is a positive number, Y will pay it to X; if negative , X will pay its absolute value to Y. | ||
::(3) '''{{isdaprov|Mid-Market Events}}'''. In the | ::(3) '''{{isdaprov|Mid-Market Events}}'''. In either case where the Termination Event is an {{isdaprov|Illegality}} or a {{isdaprov|Force Majeure Event}}, when determining a {{isdaprov|Close-out Amount}} the {{isdaprov|Determining Party}} will use [[mid-market valuation]]s that do not take the {{isdaprov|Determining Party}}’s own creditworthiness into account. <br> | ||
Latest revision as of 14:50, 6 November 2018
- 6(e)(ii) Termination Events. If the Early Termination Date results from a Termination Event:―
- (1) One Affected Party. If there is one Affected Party, the Early Termination Amount will be determined as if they were Events of Default under Section 6(e)(i) (but subject to the Mid-Market Events rider below).
- (2) Two Affected Parties. If there are two Affected Parties, each party will determine the Termination Currency Equivalent of the Close-out Amounts for all Terminated Transaction and the Early Termination Amount will be:
- (A) the sum of
- (I) half of the difference between the higher amount (determined by party “X”) and the lower amount (determined by party “Y”) and
- (II) the Termination Currency Equivalent of the Unpaid Amounts owing to X minus
- (I) half of the difference between the higher amount (determined by party “X”) and the lower amount (determined by party “Y”) and
- (B) the Termination Currency Equivalent of the Unpaid Amounts owing to Y.
- (A) the sum of
- If the Early Termination Amount is a positive number, Y will pay it to X; if negative , X will pay its absolute value to Y.
- (3) Mid-Market Events. In either case where the Termination Event is an Illegality or a Force Majeure Event, when determining a Close-out Amount the Determining Party will use mid-market valuations that do not take the Determining Party’s own creditworthiness into account.