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=====Netting and [[close-out]]===== | |||
Why should this matter here? Well, because ''[[netting]]'', in a word. Here the fabulous nuances of the {{isdama}} come into play. [[Close-out netting]] — as we all know, a clever if somewhat artificial and, in practical application, quite [[tedious]] concept — is not something that just happens by operation of the [[common law]]. [[Set-off]], which does, is a narrower and flakier thing requiring all kinds of mutuality that might not apply to your {{isdama}}. | |||
The contractual device of [[close-out netting]], by contrast, relies on the patient midwifery of {{icds}} and the sophisticated contrivances they popped into the {{isdama}}: especially the parts that say all {{{{{1}}}|Transactions}} form a {{{{{1}}}|Single Agreement}}, and those long and dusty passages in Section {{{{{1}}}|6}} which painfully recount how one terminates those {{isdaprov|Transaction}}s and nets down all the resulting exposures should things go tits up. | |||
The contractual device of [[close-out netting]], by contrast, relies on the patient midwifery of {{icds}} and the sophisticated contrivances they popped into the {{isdama}}: especially the parts that say all | |||
Now, it really wouldn’t do if one were found to have thrown those clever legal artifacts on the fire ''before'' seeking the [[common law]]’s help to manage your way out of a portfolio with a busted counterparty would it. Section {{{{{1}}}|9(c)}} is there to [[For the avoidance of doubt|avoid the doubt]] that you might have done so: Just because you’ve declared an {{{{{1}}}|Early Termination Date}}, that doesn’t mean ''all'' bets are off. Just the live {{{{{1}}}|Transactions}}. | Now, it really wouldn’t do if one were found to have thrown those clever legal artifacts on the fire ''before'' seeking the [[common law]]’s help to manage your way out of a portfolio with a busted counterparty would it. Section {{{{{1}}}|9(c)}} is there to [[For the avoidance of doubt|avoid the doubt]] that you might have done so: Just because you’ve declared an {{{{{1}}}|Early Termination Date}}, that doesn’t mean ''all'' bets are off. Just the live {{{{{1}}}|Transactions}}. |