Template:ISDA English Law Credit Support Annex 2016 Interest

“Interest Amount (VM)” means with respect to an Interest Period, the aggregate sum of the Base Currency Equivalents of the amounts of interest determined for each relevant currency and calculated for each day in that Interest Period on the portion of the Credit Support Balance (VM) comprised of cash in such currency, determined by the Valuation Agent for each such day as follows:

(i) the amount of cash in such currency on that day plus, only if “Daily Interest Compounding” is specified as applicable in Paragraph 11(g)(iii), the aggregate of each Interest Amount (VM) determined for each preceding day, if any, in that Interest Period; multiplied by

(ii) the relevant Interest Rate (VM) in effect for that day; divided by

(iii) 360 (or, in the case of pounds sterling or any other currency specified as an “A/365 Currency” in Paragraph 11(g)(i), 365),

provided that, unless “Negative Interest” is specified as applicable in Paragraph 11(g)(iii), if the Interest Amount (VM) for an Interest Period would be a negative amount, it will be deemed to be zero.
“Interest Payment (VM)” means, with respect to an Interest Period, the Interest Amount (VM) determined in respect of such Interest Period, provided that in respect of any negative Interest Amount (VM), the Interest Payment (VM) will be the absolute value of such negative Interest Amount (VM).
“Interest Period” means the period from (and including) the last day on which:

(i) a party became obliged to transfer an Interest Payment (VM) or

(ii) an Interest Amount (VM) was added to the Credit Support Balance (VM)

(or, if no Interest Payment (VM) or Interest Amount (VM) has yet fallen due or been added to the Credit Support Balance (VM), respectively, the day on which Eligible Credit Support (VM) or Equivalent Credit Support (VM) in the form of cash was transferred to or received by the Transferee)

to (but excluding) the day on which:

(i) a party is obliged to transfer the current Interest Payment (VM) or

(ii) the current Interest Amount (VM) is added to the Credit Support Balance (VM).

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11(g) Distributions and Interest Amount (VM)

(i) Interest Rate (VM). The “Interest Rate (VM)” in relation to each Eligible Currency specified above will be [SPECIFY].

(ii) Transfer of Interest Payment (VM) or application of Interest Amount (VM).

Interest Transfer: [Applies/does not apply].

Interest Payment Netting: [Applies/does not apply].

Interest Adjustment: [Applies/does not apply].

For the purposes of Paragraph 5(c)(ii)(B), the Credit Support Balance (VM) will be adjusted by the Transferee on or prior to the third Local Business Day of the following calendar month.

(iii) Other Interest Elections.

Negative Interest: [Applies/does not apply].

Daily Interest Compounding: [Applies/does not apply].

(iv) Alternative to Interest Amount (VM). The provisions of Paragraph 5(c)(ii) will apply.