Template:M summ 2002 ISDA 5(c): Difference between revisions

Template:M summ 2002 ISDA 5(c) (view source)

Revision as of 18:07, 26 February 2020

88 bytes removed , 26 February 2020

no edit summary

Amwelladmin

Bureaucrats, Interface administrators, Administrators

83,057

edits

@@ Line 3: / Line 3: @@
 What to do if the same thing counts as an {{isdaprov|Illegality}} ''[[and/or]]'' a {{isdaprov|Force Majeure Event}} ''[[and]]'' an {{isdaprov|Event of Default}} ''[[and/or]]'' a {{isdaprov|Termination Event}}.
-Why do we need this? Remember an {{isdaprov|Event of Default}} is an apocalyptic disaster scenario which blows your whole agreement up with extreme prejudice; a {{isdaprov|Termination Event}} is just “one of those things” which justifies termination, but may relate only to a single transaction: it isn’t something one needs necessarily to hang one’s head about.
+Why do we need this? Remember, an {{isdaprov|Event of Default}} is an apocalyptic disaster scenario which blows your whole agreement up with extreme prejudice; a {{isdaprov|Termination Event}} is just “one of those things” which justifies termination, but may relate only to a single {{isdaprov|Transaction}}, and even if it affects the whole portfolio, it isn’t something one needs necessarily to hang one’s head about. (It’s hardly your fault if they go and change the law on you, is it?)
-A {{isdaprov|Force Majeure Event}} is something that is so beyond one’s control or expectation that it shouldn’t count as an {{isdaprov|Event of Default}} or even a {{isdaprov|Termination Event}} ''at all''.
+A {{isdaprov|Force Majeure Event}} is something that is so beyond one’s control or expectation that it shouldn’t count as an {{isdaprov|Event of Default}} or even a {{isdaprov|Termination Event}} ''at all'' — at least until you’ve had a chance to sort yourself out, fashion a canoe paddle with a Swiss Army knife, jury-rig an aerial and get reconnected to the world wide web.
-An {{isdaprov|Event of Default}} has more severe consequences for the [[counterparty]]. Well, the whole point about [[Force Majeure Event - ISDA Provision|force majeure]] is that it is meant to give you an excuse not to perform your agreement. An {{isdaprov|Illegality}} is only a {{isdaprov|Termination Event}} (one can’t be criticised if they go and change the law on you, can one?).