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| ===Speed Read===
| | {{newisdamanual|5(a)(vii)}} |
| In essence the {{2002ma}} defintion amounts to the following:
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| The Counterparty, any {{isdaprov|Credit Support Provider}} or {{isdaprov|Specified Entity}}:―
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| #'''Dissolved''': is dissolved (other than pursuant to a merger);
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| #'''Insolvent''': becomes insolvent, unable to pay debts, or admits that in writing;
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| #'''Composition with Creditors''': makes a composition its creditors;
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| #'''Involvency Proceedings''': (A) becomes subject to insolvency (or similar) proceedings instituted by a regulator; or (B) becomes subject to insolvency (or similar) proceedings instituted by anyone ''other than'' a regulator which result in a winding up order or are not discharged within 15 days
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| #'''Voluntary Winding Up''': has a resolution passed for its winding-up (other than pursuant to a merger);
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| #'''Put in Administration''': has an administrator, provisional liquidator, or similar appointed for it or for all or substantially all its assets;
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| #'''Security Exercised''': has a secured party take possession of all or substantially all its assets which process is not dismissed within 15 days ;
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| #'''Analogous events''': Causes or is subject to any event which, under the applicable laws of any jurisdiction, has an analogous effect to any of the above; or
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| #'''Action in furtherance''': takes any action in furtherance of any of the above.
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| ===Analysis===
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| ====Market standard===
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| The ISDA {{isdaprov|bankruptcy}} definition is rarely a source of great controversy (except for the [[grace period]], as to which see below, which gets negotiated only through custom amongst ISDA negotiators because, in its wisdom, [[ISDA]] thought fit to change it in the {{2002ma}}. So you have a sort of pas-de-deux between negotiators where they argue about it for a while before getting tired, being shouted at by their business people, and moving on to something more important to argue about, like {{isdaprov|Cross Default}}*.)
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| Otherwise the ISDA ''bankruptcy'' clause is a much loved and well used market standard and you often see it being imported into other agreements precisely because everyone knows it and no one really argues about it.
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| *This, by the way, is an ISDA In-joke. Cross Default is totally pointless.
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| ====[[Grace period]]====
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| Note the contraction of the grace period from 30 days to 15 days between the {{1992ma}} and the {{2002ma}}. Note also, for students of history, the problematic {{isdaprov|Automatic Early Termination}} situation under the {{1987ma}}.
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| {{isdasnap|5(a)(vii)}}
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| ====1987 ISDA====
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| {{isdaquote|{{clause|1987|ISDA|Interest Rate and Currency Exchange Agreement|5(a)(vii)}}|5(a)(vii)|1987}}
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| {{isdaanatomy}}
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| *{{isdaprov|Automatic Early Termination}}
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