From The Jolly Contrarian
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| {{csaanat|1(a)|2016}}A paragraph of unremarkable, if unnecessary, [[throat-clearing]], though marred by a bizarre [[for the avoidance of doubt]] rider which functions as both a ''[[non sequitur|non-sequitur]]'' — no one was talking about transfers here, much less was in any particular state of confusion about them, so why bring it up now? — but also the classic self-hack: rather than ''avoiding'' doubt, this rider is [[calculated]] to do nothing quite so much as ''introduce'' it. Wait: was I meant to be doubting something here? Should I have been confused? Have I missed something?
| | #redirect[[Interpretation - VM CSA Provision]] |
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| There is nothing a [[Chicken Licken|cheerful attorney]] likes more than to worry about things, and she will toss sleeplessly for nights on end, fully occupied by questions such as — is “[[delivery]]” of [[cash]] different from “payment” of it? Is there something legally significant about “payment” that I somehow missed, in Banking Law 302, in 1989?
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| Tell your [[legal eagle]]s to relax. It won’t do any ''good'', but you can tell them. To the best the [[JC]] can figure out, all this means is that a {{vmcsaprov|Transferor}} must ''physically'' part with its collateral, handing it bodily over to the {{vmcsaprov|Transferee}}.
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| There is an interesting question as to what this might mean if your [[counterparty]] is also your banker, and you direct it to transfer [[credit support]] into the bank account you maintain with ''it'', meaning that legally the [[counterparty]] hasn’t done anything with the [[cash]] at all — not an unusual scenario, should you be a [[hedge fund]] and the [[counterparty]] your [[prime broker]] — but this will set your [[legal eagle]]s off again, and we don’t want that. We are just getting started.
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| {{sa}}
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| *[[Cash]]
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| *[[Prime broker]]
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| *[[Throat-clearing]]
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Latest revision as of 14:14, 31 August 2023