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Template:Isda 6(b)(iv) summ: Difference between revisions
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====Divide up the types of {{{{{1}}}|Termination Event}}==== | ====Divide up the types of {{{{{1}}}|Termination Event}}==== | ||
# '''Tax ones''': If a {{{{{1}}}|Tax Event}} or a {{{{{1}}}|TEUM}}<ref>That’s “Tax Event Upon Merger” to the cool kids.</ref> ''where the party merging is the one that suffers the tax'', the parties have a month to try to rearrange matters between them, their offices and affiliates to avoid the tax issue. Only once that has failed are you in {{{{{1}}}|Termination Event}} territory. ''See Section {{{{{1}}}|6(b)}}(ii) and {{{{{1}}}|6(b)(iii)}}''. | # '''Tax ones''': If a {{{{{1}}}|Tax Event}} or a {{{{{1}}}|TEUM}}<ref>That’s “Tax Event Upon Merger” to the cool kids.</ref> ''where the party merging is the one that suffers the tax'', the parties have a month to try to rearrange matters between them, their offices and affiliates to avoid the tax issue. Only once that has failed are you in {{{{{1}}}|Termination Event}} territory. ''See Section {{{{{1}}}|6(b)}}(ii) and {{{{{1}}}|6(b)(iii)}}''. | ||
# '''{{{{{1}}}|Non-Affected Party}} ones''': If it’s a {{{{{1}}}|CEUM}}<ref>That’s “Credit Event Upon Merger” to the cool kids.</ref>, an {{{{{1}}}|ATE}} or a {{{{{1}}}|TEUM}} ''where the {{{{{1}}}|Non-Affected Party}} suffers the tax'' | # '''{{{{{1}}}|Non-Affected Party}} ones''': If it’s a {{{{{1}}}|CEUM}}<ref>That’s “Credit Event Upon Merger” to the cool kids.</ref>, an {{{{{1}}}|ATE}} or a {{{{{1}}}|TEUM}} ''where the {{{{{1}}}|Non-Affected Party}} suffers the tax'', then if the other guy is a {{{{{1}}}|Non-Affected Party}}, then (whether or not you are) you may designate an {{{{{1}}}|Early Termination date}} for the {{{{{1}}}|Affected Transactions}}. | ||
# '''{{{{{1}}}|Illegality}} and {{isdaprov|Force Majeure}}''': Here, if you are on a {{2002ma}}, there may be a {{ | # '''{{{{{1}}}|Illegality}} and {{isdaprov|Force Majeure}}''': Here, if you are on a {{2002ma}}, there may be a {{isdaprov|Waiting Period}} to sit through, to see whether the difficulty clears. For {{isdaprov|Force Majeure Event}} it is eight {{isdaprov|Local Business Day}}s; for {{isdaprov|Illegality}} ''other than one preventing performance of a {{isdaprov|Credit Support Document}}'': three {{isdaprov|Local Business Day}}s. So, sit through it. Why is there exception for {{isdaprov|Illegality}} on a {{isdaprov|Credit Support Document}}? Because, even though it wasn’t your fault, illegality of a {{isdaprov|Credit Support Document}} profoundly changes your credit assessment (in a way that arguably, even a payment or delivery obligation doesn’t), and that is the most fundamental risk you are managing under the {{isdama}}. | ||