From The Jolly Contrarian
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| {{isdaanat|Specified Indebtedness}}
| | #redirect[[Cross Default - ISDA Provision]] |
| A simple and innocuous enough provision. Almost redundant — why go to the trouble of defining borrowed money as another term? (because some firms, in their infinite wisdom, will wish to change the definition of borrowed money to include derivatives, other trading exposures, or even any payment obligations of any kind, and Specified Indebtedness is a (somewhat) less loaded label than borrowed money)<ref>By the way, the [[JC]]’s personal view is that one should not widen the definition beyond the normal conception of “[[borrowed money]]”, and if one is a [[Bank/Credit Institution|bank]], may wish to ''narrow'' it, to exclude deposits. See the article on ISDA’s {{isdaprov|Cross Default}} {{gmslaprov|Event of Default}} for more information.</ref>.
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| In any case, what should one make of “[[borrowed money]]”? Could it include [[repo]] and stock loan]] obligations? Amounts owed to trade creditors? (In each case no, according to Simon Firth - see [[borrowed money|here]])
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| Of particular interest in the debate on {{isdaprov|Cross Default}}. Please refer to that section for a fuller discussion. see also the somewhat clumsier (but materially similar) definition of {{efetprov|Specified Indebtedness}} in the {{efetma}}.
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| {{seealso}}
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| *{{isdaprov|Cross Default}} ({{isdama}})
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| *[[cross default]] (generally)
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| {{ref}}
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Latest revision as of 18:55, 5 January 2024