Template:Nutshell 2016 CSA 5(c)(ii)(A): Difference between revisions

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(Created page with "::{{vmcsaprov|5(c)(ii)(A)}} if “'''{{vmcsaprov|Interest Transfer}}'''” applies the {{vmcsaprov|Interest Payer (VM)}} will transfer an {{vmcsaprov|Interest Payment (VM)}} t...")
 
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::{{vmcsaprov|5(c)(ii)(A)}} if “'''{{vmcsaprov|Interest Transfer}}'''” applies the {{vmcsaprov|Interest Payer (VM)}} will transfer an {{vmcsaprov|Interest Payment (VM)}} to the {{vmcsaprov|Interest Payer (VM)}}, as required under Paragraph {{vmcsaprov|11(g)(ii)}} and on any {{isdaprov|Early Termination Date}}. If “{{vmcsaprov|Interest Payment Netting}}” applies:  
::{{vmcsaprov|5(c)(ii)(A)}} if “'''{{vmcsaprov|Interest Transfer}}'''” applies the {{vmcsaprov|Interest Payer (VM)}} must transfer an {{vmcsaprov|Interest Payment (VM)}} to the {{vmcsaprov|Interest Payer (VM)}}, as required under Paragraph {{vmcsaprov|11(g)(ii)}} and on any {{isdaprov|Early Termination Date}} provided that if “{{vmcsaprov|Interest Payment Netting}}” applies:  
:::(I) if the {{vmcsaprov|Interest Payer (VM)}} is due a {{vmcsaprov|Delivery Amount (VM)}} or {{vmcsaprov|Return Amount (VM)}} for the same date:  
:::(I) if the {{vmcsaprov|Interest Payer (VM)}} is due a payment under the [[VM CSA]] on the same date:  
::::(a) it will be reduced by the {{vmcsaprov|Interest Payment (VM)}} (but not below zero), provided that, in case of such {{vmcsaprov|Return Amount (VM)}}, if the part of the {{vmcsaprov|Credit Support Balance (VM)}} which is cash in the {{vmcsaprov|Base Currency}} is less than such {{vmcsaprov|Interest Payment (VM)}}, such reduction will only be to the extent of that cash portion (the “'''{{vmcsaprov|Eligible Return Amount (VM)}}'''”); and  
::::(a) it will be reduced by the {{vmcsaprov|Interest Payment (VM)}} (but not below zero), provided that for a {{vmcsaprov|Return Amount (VM)}}, the deduction will only apply to the extent of any {{vmcsaprov|Base Currency}} cash portion of the {{vmcsaprov|Credit Support Balance (VM)}}; and  
::::(b) the {{vmcsaprov|Interest Payer (VM)}} will transfer to the {{vmcsaprov|Interest Payer (VM)}} any excess of such {{vmcsaprov|Interest Payment (VM)}} after the reduction;  
::::(b) after any such reduction the {{vmcsaprov|Interest Payer (VM)}} must transfer the remaining {{vmcsaprov|Interest Payment (VM)}} to the {{vmcsaprov|Transferee}};  
:::(II) if a {{vmcsaprov|Delivery Amount (VM)}} or a {{vmcsaprov|Return Amount (VM)}} is so reduced, for purposes of  working out the {{vmcsaprov|Credit Support Balance (VM)}} only, the Transferee will be deemed to have received or transferred in cash in the {{vmcsaprov|Base Currency}} the reduced amount, on the day on which the {{vmcsaprov|Interest Payment (VM)}} was due; and <br>
:::(II) following such a reduction, when working out the {{vmcsaprov|Credit Support Balance (VM)}}, the {{vmcsaprov|Transferee}} will be deemed to have received or transferred the {{vmcsaprov|Base Currency}} cash equivalent of the reduced amount, on the due date for the {{vmcsaprov|Interest Payment (VM)}}; and <br>

Revision as of 23:57, 21 December 2019

5(c)(ii)(A) if “Interest Transfer” applies the Interest Payer (VM) must transfer an Interest Payment (VM) to the Interest Payer (VM), as required under Paragraph 11(g)(ii) and on any Early Termination Date provided that if “Interest Payment Netting” applies:
(I) if the Interest Payer (VM) is due a payment under the VM CSA on the same date:
(a) it will be reduced by the Interest Payment (VM) (but not below zero), provided that for a Return Amount (VM), the deduction will only apply to the extent of any Base Currency cash portion of the Credit Support Balance (VM); and
(b) after any such reduction the Interest Payer (VM) must transfer the remaining Interest Payment (VM) to the Transferee;
(II) following such a reduction, when working out the Credit Support Balance (VM), the Transferee will be deemed to have received or transferred the Base Currency cash equivalent of the reduced amount, on the due date for the Interest Payment (VM); and
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