Two Affected Parties - ISDA Provision: Difference between revisions

From The Jolly Contrarian
Jump to navigation Jump to search
Tag: New redirect
 
(10 intermediate revisions by the same user not shown)
Line 1: Line 1:
{{isdasnap|6(b)(iii)}}
#redirect[[Right to Terminate Following Termination Event - ISDA Provision]]
 
{{becareful}}
Exercise Caution here: Under the {{1992ma}} version, if your {{isdaprov|Failure To Pay}} also amounts to an {{isdaprov|Illegality}} it is deemed to be an Illegality, and if there are two {{isdaprov|Affected Parties}} there is a signficant delay in your ability to close out.
 
==Differences between {{1992ma}} and {{2002ma}}==
Note also that reference to Illegality has been excised from the {{2002ma}} version.
 
Per Mr Firth’s bible, it was changed because it was found to be difficult in practice to implement a transfer or amendment after an {{isdaprov|Illegality}}.  Also, it could be that people realised that if an {{isdaprov|Illegality}} occurred you don’t want to have to wait 30 days to terminate, especially since you cannot rely on {{isdaprov|2(a)(iii)}} to withhold payments in the mean time.
 
This was raised at a recent last {{ISDA}} meeting: {{A&O}} pointed out that there was a template amendment agreement to change the {{1992ma}} {{isdaprov|Illegality}} definition into the {{2002ma}} (if you don’t want to use the 2002 to start with). 
 
{{isdaanatomy}}

Latest revision as of 17:26, 14 August 2024