Template:2014 ISDA Credit Derivatives Definitions 8.1: Difference between revisions
Amwelladmin (talk | contribs) Created page with "'''Section {{cddprov|8.1}} Physical Settlement'''. If “'''{{cddprov|Physical Settlement}}'''” is specified as the {{cddprov|Settlement Method}} in the related {{cddprov|Confirmation}} (or if Physical Settlement is applicable as the {{cddprov|Fallback Settlement Method}} in accordance with Section {{cddprov|6.1}} ({{cddprov|Auction Settlement}})), {{cddprov|Buyer}} shall, subject to Sections {{cddprov|5.1}} (Settlement), {{cddprov|10.1}} (Settlement Suspension) and {{..." Tags: Mobile edit Mobile web edit |
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'''Section {{cddprov|8.1}} Physical Settlement'''. If “'''{{cddprov|Physical Settlement}}'''” is specified as the {{cddprov|Settlement Method}} in the related {{cddprov|Confirmation}} (or if Physical Settlement is applicable as the {{cddprov|Fallback Settlement Method}} in accordance with Section {{cddprov|6.1}} ({{cddprov|Auction Settlement}})), {{cddprov|Buyer}} shall, subject to Sections {{cddprov|5.1}} (Settlement), {{cddprov|10.1}} (Settlement Suspension) and {{cddprov|11.2}}(c)(ii) (Additional Representations and Agreements for Physical Settlement), on or prior to the {{cddprov|Physical Settlement Date}}, Deliver to {{cddprov|Seller}} the {{cddprov|Deliverable Obligation}}s specified in the {{cddprov|Notice of Physical Settlement}} or any {{cddprov|NOPS Amendment Notice}}, as applicable, and {{cddprov|Seller}} shall pay to {{cddprov|Buyer}} the {{cddprov|Physical Settlement Amount}} that corresponds to the {{cddprov|Deliverable Obligation}}s that {{cddprov|Buyer}} has Delivered. If {{cddprov|Buyer}} Delivers {{cddprov|Deliverable Obligation}}s in an amount greater than the {{cddprov|Deliverable Obligation}}s specified in the {{cddprov|Notice of Physical Settlement}} or any {{cddprov|NOPS Amendment Notice}}, as applicable, {{cddprov|Seller}} shall not be required to pay more than the {{cddprov|Physical Settlement Amount}} that corresponds to the {{cddprov|Deliverable Obligation}}s specified in the {{cddprov|Notice of Physical Settlement}} or any {{cddprov|NOPS Amendment Notice}}, as applicable. For purposes of the foregoing, Delivery by {{cddprov|Buyer}} and payment by {{cddprov|Seller}} shall be made in accordance with market practice applicable to the {{cddprov|Deliverable Obligation}} on the {{cddprov|Delivery Date}}.<br> | '''Section {{cddprov|8.1}} {{cddprov|Physical Settlement}}'''. If “'''{{cddprov|Physical Settlement}}'''” is specified as the {{cddprov|Settlement Method}} in the related {{cddprov|Confirmation}} (or if Physical Settlement is applicable as the {{cddprov|Fallback Settlement Method}} in accordance with Section {{cddprov|6.1}} ({{cddprov|Auction Settlement}})), {{cddprov|Buyer}} shall, subject to Sections {{cddprov|5.1}} (Settlement), {{cddprov|10.1}} (Settlement Suspension) and {{cddprov|11.2}}(c)(ii) (Additional Representations and Agreements for Physical Settlement), on or prior to the {{cddprov|Physical Settlement Date}}, Deliver to {{cddprov|Seller}} the {{cddprov|Deliverable Obligation}}s specified in the {{cddprov|Notice of Physical Settlement}} or any {{cddprov|NOPS Amendment Notice}}, as applicable, and {{cddprov|Seller}} shall pay to {{cddprov|Buyer}} the {{cddprov|Physical Settlement Amount}} that corresponds to the {{cddprov|Deliverable Obligation}}s that {{cddprov|Buyer}} has Delivered. If {{cddprov|Buyer}} Delivers {{cddprov|Deliverable Obligation}}s in an amount greater than the {{cddprov|Deliverable Obligation}}s specified in the {{cddprov|Notice of Physical Settlement}} or any {{cddprov|NOPS Amendment Notice}}, as applicable, {{cddprov|Seller}} shall not be required to pay more than the {{cddprov|Physical Settlement Amount}} that corresponds to the {{cddprov|Deliverable Obligation}}s specified in the {{cddprov|Notice of Physical Settlement}} or any {{cddprov|NOPS Amendment Notice}}, as applicable. For purposes of the foregoing, Delivery by {{cddprov|Buyer}} and payment by {{cddprov|Seller}} shall be made in accordance with market practice applicable to the {{cddprov|Deliverable Obligation}} on the {{cddprov|Delivery Date}}.<br> | ||
In the case of {{cddprov|Deliverable Obligation}}s that are (a) {{cddprov|Borrowed Money}}, {{cddprov|Buyer}} shall Deliver {{cddprov|Deliverable Obligation}}s with an {{cddprov|Outstanding Principal Balance}} and (b) not {{cddprov|Borrowed Money}}, {{cddprov|Buyer}} shall Deliver {{cddprov|Deliverable Obligation}}s with a {{cddprov|Due and Payable Amount}} (or, in the case of either (a) or (b), the equivalent Currency Amount of any such amount), in each case in the aggregate amount as of the relevant {{cddprov|Delivery Date}}s that is equal to the {{cddprov|Floating Rate Payer Calculation Amount}}; provided that {{cddprov|Buyer}} may Deliver {{cddprov|Deliverable Obligation}}s with an {{cddprov|Outstanding Principal Balance}} or a {{cddprov|Due and Payable Amount}}, as applicable, (or the equivalent Currency Amount of any such amount), in the aggregate amount as of the relevant {{cddprov|Delivery Date}}s that is either (i) greater than the {{cddprov|Floating Rate Payer Calculation Amount}}, in which case {{cddprov|Seller}} shall not be required to pay more than the {{cddprov|Physical Settlement Amount}} to Buyer, or (ii) less than the {{cddprov|Floating Rate Payer Calculation Amount}}, in which case {{cddprov|Seller}} shall not be required to pay more than the proportion of the {{cddprov|Physical Settlement Amount}} that corresponds to the {{cddprov|Deliverable Obligation}}s Delivered, subject to Section {{cddprov|11.2}}(c)(ii) (Additional Representations and Agreements for Physical Settlement).<br> | In the case of {{cddprov|Deliverable Obligation}}s that are (a) {{cddprov|Borrowed Money}}, {{cddprov|Buyer}} shall Deliver {{cddprov|Deliverable Obligation}}s with an {{cddprov|Outstanding Principal Balance}} and (b) not {{cddprov|Borrowed Money}}, {{cddprov|Buyer}} shall Deliver {{cddprov|Deliverable Obligation}}s with a {{cddprov|Due and Payable Amount}} (or, in the case of either (a) or (b), the equivalent Currency Amount of any such amount), in each case in the aggregate amount as of the relevant {{cddprov|Delivery Date}}s that is equal to the {{cddprov|Floating Rate Payer Calculation Amount}}; provided that {{cddprov|Buyer}} may Deliver {{cddprov|Deliverable Obligation}}s with an {{cddprov|Outstanding Principal Balance}} or a {{cddprov|Due and Payable Amount}}, as applicable, (or the equivalent Currency Amount of any such amount), in the aggregate amount as of the relevant {{cddprov|Delivery Date}}s that is either (i) greater than the {{cddprov|Floating Rate Payer Calculation Amount}}, in which case {{cddprov|Seller}} shall not be required to pay more than the {{cddprov|Physical Settlement Amount}} to Buyer, or (ii) less than the {{cddprov|Floating Rate Payer Calculation Amount}}, in which case {{cddprov|Seller}} shall not be required to pay more than the proportion of the {{cddprov|Physical Settlement Amount}} that corresponds to the {{cddprov|Deliverable Obligation}}s Delivered, subject to Section {{cddprov|11.2}}(c)(ii) (Additional Representations and Agreements for Physical Settlement).<br> | ||
Latest revision as of 15:25, 7 May 2023
Section 8.1 Physical Settlement. If “Physical Settlement” is specified as the Settlement Method in the related Confirmation (or if Physical Settlement is applicable as the Fallback Settlement Method in accordance with Section 6.1 (Auction Settlement)), Buyer shall, subject to Sections 5.1 (Settlement), 10.1 (Settlement Suspension) and 11.2(c)(ii) (Additional Representations and Agreements for Physical Settlement), on or prior to the Physical Settlement Date, Deliver to Seller the Deliverable Obligations specified in the Notice of Physical Settlement or any NOPS Amendment Notice, as applicable, and Seller shall pay to Buyer the Physical Settlement Amount that corresponds to the Deliverable Obligations that Buyer has Delivered. If Buyer Delivers Deliverable Obligations in an amount greater than the Deliverable Obligations specified in the Notice of Physical Settlement or any NOPS Amendment Notice, as applicable, Seller shall not be required to pay more than the Physical Settlement Amount that corresponds to the Deliverable Obligations specified in the Notice of Physical Settlement or any NOPS Amendment Notice, as applicable. For purposes of the foregoing, Delivery by Buyer and payment by Seller shall be made in accordance with market practice applicable to the Deliverable Obligation on the Delivery Date.
In the case of Deliverable Obligations that are (a) Borrowed Money, Buyer shall Deliver Deliverable Obligations with an Outstanding Principal Balance and (b) not Borrowed Money, Buyer shall Deliver Deliverable Obligations with a Due and Payable Amount (or, in the case of either (a) or (b), the equivalent Currency Amount of any such amount), in each case in the aggregate amount as of the relevant Delivery Dates that is equal to the Floating Rate Payer Calculation Amount; provided that Buyer may Deliver Deliverable Obligations with an Outstanding Principal Balance or a Due and Payable Amount, as applicable, (or the equivalent Currency Amount of any such amount), in the aggregate amount as of the relevant Delivery Dates that is either (i) greater than the Floating Rate Payer Calculation Amount, in which case Seller shall not be required to pay more than the Physical Settlement Amount to Buyer, or (ii) less than the Floating Rate Payer Calculation Amount, in which case Seller shall not be required to pay more than the proportion of the Physical Settlement Amount that corresponds to the Deliverable Obligations Delivered, subject to Section 11.2(c)(ii) (Additional Representations and Agreements for Physical Settlement).