From The Jolly Contrarian
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| {{isdaanat|6(e)(i)}}
| | #redirect[[Payments on Early Termination - ISDA Provision]] |
| The effect of this is that in closing out an ISDA, the first step is to terminate all {{isdaprov|transaction}}s, then figure out any {{isdaprov|Unpaid Amount}}s that were due but had not been paid at the time the {{isdaprov|Transaction}} terminated. The close out happens under Section {{isdaprov|6(e)}} of the {{isdama}} itself and the recourse is to a net sum. Betting does ''not'' happen under the {{isdaprov|Transactions}} — on the theory of the game there are no outstanding Transactions at the point of netting; just payables.
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| Therefore, if your [[credit support]] (particularly [[guarantee]]s or [[LC|letters of credit]]) explicitly reference amounts due under specific {{isdaprov|Transaction}}s, you may lose any credit support at precisely the point you need it.
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| Which would be a bummer.
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| Further commentary on the [[Guarantee]] page.
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| {{seealso}}
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| *[[Guarantee]]
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| *{{isdaprov|Unpaid Amount}}s
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Latest revision as of 18:35, 13 April 2020