Template:Nutshell EUA Annex (d)(i)(5): Difference between revisions

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{{euaprov|(d)(i)(4)}} '''{{euaprov|Settlement Disruption Event}}'''
{{euaprov|(d)(i)(5)}} '''{{euaprov|Suspension Event}}'''
:(A) '''Notification''': Either party may notify the other party in writing of a {{euaprov|Settlement Disruption Event}} and the impacted {{isdaprov|Transaction}}s. If the affected party is the one giving notice, it must also give details of the {{euaprov|Settlement Disruption Event}} and a non-binding estimate of the extent and expected duration of its resultant inability to perform.
:(A) '''Notification''': A party impacted by a {{euaprov|Suspension Event}} must notify the other party in writing as soon as reasonably practicable. It must also give what details of the {{euaprov|Suspension Event}} it has and a non-binding estimate of the extent and expected duration of its resultant inability to perform.
:(B) '''Effect''': Upon a {{euaprov|Settlement Disruption Event}} both parties’ olibgations will be suspended, subject to {{euaprov|Continuing Settlement Disruption Event}} below, until the {{euaprov|Settlement Disruption Event}} is no longer preventing settlement. During the {{euaprov|Settlement Disruption Event}}, the affected party must continue to use all reasonable endeavours to overcome it.  
:(B) '''Effect''': Upon a {{euaprov|Suspension Event}} both parties’ obligations will be suspended, subject to {{euaprov|Continuing Suspension Event}} below, until the {{euaprov|Suspension Event}} no longer prevents settlement. During the {{euaprov|Suspension Event}}, the affected party must try [[Endeavour|reasonably]] to overcome it.  
:(C) '''Delayed Performance''': Subject to {{euaprov|Continuing Settlement Disruption Event}} below, once the {{euaprov|Settlement Disruption Event}} no longer prevents settlement, both parties must, promptly and within two {{euaprov|Delivery Business Day}}s, resume their obligations under the relevant {{isdaprov|Transaction}}s.
:(C) '''Delayed Performance''': Subject to {{euaprov|Continuing Suspension Event}} below, once the {{euaprov|Suspension Event}} ceases, both parties must promptly resume their obligations under the {{isdaprov|Transaction}}s by the earlier of: (i) ten {{euaprov|Delivery Business Day}}s after the Suspension Event lifts; and (ii) 3 {{euaprov|Delivery Business Days}} before the {{euaprov|End of Phase Reconciliation Deadline}} (the “'''{{euaprov|Delayed Delivery Date}}'''”). If {{euaprov|Delivering Party}} has successfully delivered the {{euaprov|Allowances to be Delivered}} by the {{euaprov|Delayed Delivery Date}}, {{euaprov|Receiving Party}} must pay {{euaprov|Delivering Party}}, on the {{euaprov|Delayed Payment Date}}:
:(D) '''{{euaprov|Continuing Settlement Disruption Event}}''': Where a {{euaprov|Settlement Disruption Event}} continues:
::(I) '''{{euaprov|Allowance Forward Transaction}}s''': ''({{euaprov|Allowance Purchase Price}} x {{euaprov|Number of Allowances}} delivered by the {{euaprov|Delayed Delivery Date}}) + {{euaprov|Cost of Carry Amount}}'';
::(I) for 9 {{euaprov|Delivery Business Day}}s after the originally scheduled {{euaprov|Delivery Date}}; or, if shorter:
::(II) '''{{euaprov|Allowance Option Transaction}}s''': ''({{euaprov|Allowance Strike Price}} x {{euaprov|Number of Allowances}} delivered by the {{euaprov|Delayed Delivery Date}}) + {{euaprov|Cost of Carry Amount}}''.
::(II) for the period ending on a {{euaprov|Reconciliation Deadline}} falling on after the originally scheduled {{euaprov|Delivery Date}}; or, if shorter:
:(D) '''{{euaprov|Continuing Suspension Event}}''': Where a {{euaprov|Suspension Event}} continues on the {{euaprov|Long-Stop Date}}, then there will be an {{isdaprov|Illegality}} where the {{isdaprov|Transaction}} is the sole {{isdaprov|Affected Transaction}}, both parties are {{isdaprov|Affected Parties}},no {{isdaprov|Waiting Period}} will apply and the {{euaprov|Long-Stop Date}} will be the {{isdaprov|Early Termination Date}}. When determining the {{isdaprov|Early Termination Amount}}, if “{{euaprov|Payment on Termination for Suspension}}” applies, the suspended obligations will resume on the {{isdaprov|Early Termination Date}}, and if it does not, the parties will have no further obligations after the {{euaprov|Suspension Event}} (other than for any {{isdaprov|Unpaid Amounts}}); provided that:
::(III) for the period ending on the day 3 {{euaprov|Delivery Business Day}}s before the {{euaprov|End of Phase Reconciliation Deadline}} falling on or after the originally scheduled {{euaprov|Delivery Date}},
::(i) {{euaprov|Delivering Party}} must promptly refund any amount {{euaprov|Receiving Party}} paid it under any {{euaprov|Allowance Forward Transaction}} or {{euaprov|Call}}; and  
:then at the end of the relevant period, an {{isdaprov|Illegality}} will occur where the relevant {{isdaprov|Transaction}} is the sole {{isdaprov|Affected Transaction}}, both parties are {{isdaprov|Affected Parties}}, no {{isdaprov|Waiting Period}} will apply and, if an {{isdaprov|Early Termination Date}} results, then, when determining the {{isdaprov|Early Termination Amount}} if “{{euaprov|Payment on Termination for Settlement Disruption}}” applies, the suspended obligations will resume on the {{isdaprov|Early Termination Date}}, and if it does not, the parties will have no further obligations after the {{euaprov|Settlement Disruption Event}} (other than in respect of any {{isdaprov|Unpaid Amounts}}); provided that:
::(ii) {{euaprov|Receiving Party}} must promptly refund any amount {{euaprov|Delivering Party}} paid it under a {{euaprov|Put}}  
::(i) {{euaprov|Delivering Party}} must promptly refund to {{euaprov|Receiving Party}} any amount {{euaprov|Receiving Party}} paid under any {{euaprov|Allowance Forward Transaction}} or {{euaprov|Call}}; and  
:that was not paid for delivered {{euaprov|Allowance}}s, together with interest from the payment date until the {{isdaprov|Transaction}} termination date at the relevant overnight deposit rate.
::(ii) {{euaprov|Receiving Party}} must promptly refund to {{euaprov|Delivering Party}} any amount {{euaprov|Delivering Party}} paid under a {{euaprov|Put}}  
::other than in respect of delivered {{euaprov|Allowance}}s, together with interest from the payment date until the date of termination of the {{isdaprov|Transaction}} at the overnight deposit rate for the relevant currency.

Latest revision as of 14:06, 4 May 2023

(d)(i)(5) Suspension Event

(A) Notification: A party impacted by a Suspension Event must notify the other party in writing as soon as reasonably practicable. It must also give what details of the Suspension Event it has and a non-binding estimate of the extent and expected duration of its resultant inability to perform.
(B) Effect: Upon a Suspension Event both parties’ obligations will be suspended, subject to Continuing Suspension Event below, until the Suspension Event no longer prevents settlement. During the Suspension Event, the affected party must try reasonably to overcome it.
(C) Delayed Performance: Subject to Continuing Suspension Event below, once the Suspension Event ceases, both parties must promptly resume their obligations under the Transactions by the earlier of: (i) ten Delivery Business Days after the Suspension Event lifts; and (ii) 3 Delivery Business Days before the End of Phase Reconciliation Deadline (the “Delayed Delivery Date”). If Delivering Party has successfully delivered the Allowances to be Delivered by the Delayed Delivery Date, Receiving Party must pay Delivering Party, on the Delayed Payment Date:
(I) Allowance Forward Transactions: (Allowance Purchase Price x Number of Allowances delivered by the Delayed Delivery Date) + Cost of Carry Amount;
(II) Allowance Option Transactions: (Allowance Strike Price x Number of Allowances delivered by the Delayed Delivery Date) + Cost of Carry Amount.
(D) Continuing Suspension Event: Where a Suspension Event continues on the Long-Stop Date, then there will be an Illegality where the Transaction is the sole Affected Transaction, both parties are Affected Parties,no Waiting Period will apply and the Long-Stop Date will be the Early Termination Date. When determining the Early Termination Amount, if “Payment on Termination for Suspension” applies, the suspended obligations will resume on the Early Termination Date, and if it does not, the parties will have no further obligations after the Suspension Event (other than for any Unpaid Amounts); provided that:
(i) Delivering Party must promptly refund any amount Receiving Party paid it under any Allowance Forward Transaction or Call; and
(ii) Receiving Party must promptly refund any amount Delivering Party paid it under a Put
that was not paid for delivered Allowances, together with interest from the payment date until the Transaction termination date at the relevant overnight deposit rate.
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