Template:Flawed asset capsule: Difference between revisions

A “[[flawed asset]]” provision allows the “innocent” party to a financial transaction to suspend performance of its own obligations if its counterparty suffers certain default events ''without'' finally terminating or closing out the transaction. Should the defaulting side cure the default scenario, the transaction resumes and the suspending party must perform all its obligations including the suspended ones. For so long as it ''not'' cured, the innocent party may close the Master Agreement out at any time, but is not ''obliged'' to.