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Template:Isda 6(b)(iv) summ: Difference between revisions
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What a beast. If you track it through in {{ | What a beast. If you track it through in {{nutshell}} terms, it isn’t as bad as it looks, but you have the [[ISDA ninja]]’s gift for over-complication, and {{icds}}’s yen for dismal drafting, to thank for this being the trial it is. | ||
To make it easier, we’ve invented some concepts and taken a few liberties: | To make it easier, we’ve invented some concepts and taken a few liberties: | ||
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So with that all out the way, here is how it works. Keep in mind that, unlike {{{{{1}}}|Events of Default}}, {{{{{1}}}|Termination Event}}s can arise through no fault of the {{{{{1}}}|Affected Party}} and, therefore, are not always as apocalyptic in consequence. Depending what they are, they may be cured or worked-around, and dented {{{{{1}}}|Transaction}}s that can’t be panel-beaten back into shape may be surgically excised, allowing the remainder of the {{isdama}}, and all {{{{{1}}}|Unaffected Transaction}}s under it, to carry on as normal. So here goes: | So with that all out the way, here is how it works. Keep in mind that, unlike {{{{{1}}}|Events of Default}}, {{{{{1}}}|Termination Event}}s can arise through no fault of the {{{{{1}}}|Affected Party}} and, therefore, are not always as apocalyptic in consequence. Depending what they are, they may be cured or worked-around, and dented {{{{{1}}}|Transaction}}s that can’t be panel-beaten back into shape may be surgically excised, allowing the remainder of the {{isdama}}, and all {{{{{1}}}|Unaffected Transaction}}s under it, to carry on as normal. So here goes: | ||
====Divide up the types of | =====Divide up the types of Termination Event===== | ||
'''Tax ones''': If a {{{{{1}}}|Tax Event}} or a {{{{{1}}}|TEUM}}<ref>That’s “Tax Event Upon Merger” to the cool kids.</ref> ''where the party merging is the one that suffers the tax'', the parties have a month to try to rearrange matters between them, their offices and affiliates to avoid the tax issue. Only once that has failed are you in {{{{{1}}}|Termination Event}} territory. ''See Section {{{{{1}}}|6(b)}}(ii) and {{{{{1}}}|6(b)(iii)}}''. | '''Tax ones''': If a {{{{{1}}}|Tax Event}} or a {{{{{1}}}|TEUM}}<ref>That’s “Tax Event Upon Merger” to the cool kids.</ref> ''where the party merging is the one that suffers the tax'', the parties have a month to try to rearrange matters between them, their offices and affiliates to avoid the tax issue. Only once that has failed are you in {{{{{1}}}|Termination Event}} territory. ''See Section {{{{{1}}}|6(b)}}(ii) and {{{{{1}}}|6(b)(iii)}}''. | ||