Elections and Variables - CSA Provision

1995 ISDA Credit Support Annex (English Law) A Jolly Contrarian owner’s manual™ Resources and navigation Resources Full wikitext | Nutshell wikitext Navigation 1 (Interpretation) | 2 (Credit Support Obligations) | 3 (Transfers, Calculations and Exchanges) | 4 (Dispute Resolution) | 5 (Title Transfer etc) | 6 (Default) | 7 (Representation) | 8 (Expenses) | 9 (Miscellaneous) | 10 (Definitions) | 11 (Elections and Variables) Index — Click the ᐅ to expand: 1995 CSA Paragraph 11 in a Nutshell™ Use at your own risk, campers! Template:Nutshell 1995 CSA 11 view template Full text of Paragraph 11 11 Elections and Variables 11(a) Base Currency and Eligible Currency. 11(a)(i) “Base Currency” means United States Dollars unless otherwise specified here: 11(a)(ii) “Eligible Currency” means the Base Currency and each other currency specified here: 11(b) Credit Support Obligations. 11(b)(i) Delivery Amount, Return Amount and Credit Support Amount. 11(b)(i)(A) “Delivery Amount” has the meaning specified in Paragraph 2(a), unless otherwise specified here: 11(b)(i)(B) “Return Amount” has the meaning specified in Paragraph 2(b), unless otherwise specified here: 11(b)(i)(C) “Credit Support Amount” has the meaning specified in Paragraph 10, unless otherwise specified here: 11(b)(ii) Eligible Credit Support. The following items will qualify as “Eligible Credit Support” for the party specified: In each case with checkboxes are for Party A; Party B; and Valuation Percentage (A) cash in an Eligible Currency (B) negotiable debt obligations issued by the Government of [ ] having an original maturity at issuance of not more than one year (C) negotiable debt obligations issue by the Government of [ ] having an original maturity at issuance of more than one year but not more than 10 years (D) negotiable debt obligation issued by the Government of [ ] having an original maturity at issuance of more than 10 years (E) other: 11(b)(iii) Thresholds. 11(b)(iii)(A) “Independent Amount” means with respect to Party A: [SPECIFY] “Independent Amount” means with respect to Party B: [SPECIFY] 11(b)(iii)(B) “Threshold” means with respect to Party A: [SPECIFY] “Threshold” means with respect to Party B: [SPECIFY] 11(b)(iii)(C) “Minimum Transfer Amount” means with respect to Party A: [SPECIFY] “Minimum Transfer Amount” means with respect to Party B: [SPECIFY] 11(b)(iii)(D) Rounding. The Delivery Amount and the Return Amount will be rounded [down to the nearest integral multiple of ..../up and down to the nearest integral multiple of ...., respectively]. 11(c) Valuation and Timing. 11(c)(i) “Valuation Agent” means, for purposes of Paragraphs 2 and 4, the party making the demand under Paragraph 2, and, for purposes of Paragraph 5(c), the Transferee, as applicable, unless otherwise specified here: [SPECIFY] 11(c)(ii) “Valuation Date” means: [SPECIFY] 11(c)(iii) “Valuation Time” means: [ ] the close of business in the place of location of the Valuation Agent on the Valuation Date or date of calculation, as applicable; [ ] the close of business on the Local Business Day immediately preceding the Valuation Date or date of calculation, as applicable; provided that the calculations of Value and Exposure will, as far as practicable, be made as of approximately the same time on the same date. 11(c)(iv) “Notification Time” means 1:00 p.m., London time, on a Local Business Day, unless otherwise specified here: [SPECIFY] 11(d) Exchange Date. “Exchange Date” has the meaning specified in Paragraph 3(c)(ii), unless otherwise specified here: 11(e) Dispute Resolution 11(e)(i) “Resolution Time” means 1:00 p.m., London time, on the Local Business Day following the date on which the notice is given that gives rise to a dispute under Paragraph 4, unless otherwise specified here: ... 11(e)(ii) Value. For the purpose of Paragraphs 4(a)(4)(i)(C) and 4(a)(4)(ii), the Value of the outstanding Credit Support Balance or of any transfer of Eligible Credit Support or Equivalent Credit Support, as the case may be, will be calculated as follows: ... 11(e)(iii) Alternative. The provisions of Paragraph 4 will apply, unless an alternative dispute resolution procedure is specified here: ... 11(f) Distributions and Interest Amount. 11(f)(i) Interest Rate. The “Interest Rate” in relation to each Eligible Currency specified below will be: Eligible Currency ………………………………… ………………………………… ………………………………… Interest Rate ………………………………… ………………………………… ………………………………… 11(f)(ii) Transfer of Interest Amount. The transfer of the Interest Amount will be made on the last Local Business Day of each calendar month and on any Local Business Day that a Return Amount consisting wholly or partly of cash is transferred to the Transferor pursuant to Paragraph 2(b), unless otherwise specified here: ... 11(f)(iii) Alternative to Interest Amount. The provisions of Paragraph 5(c)(ii) will apply, unless otherwise specified here: ... 11(g) Addresses for Transfers. Party A: ... Party B: ... 11(h) Other Provisions. view template The varieties of ISDA CSA Subject 1994 NY 1995 Eng 2016 VM NY 2016 VM Eng 2018 IM Eng Preamble Pre Pre Pre Pre Pre Interpretation 1 1 1 1 1 Security Interest 2 - 2 - 2 Credit Support Obligations 3 2 3 2 3 Transfers, Calculations and Exchanges - 3 - 3 - Conditions Precedent, Transfer Timing, Calculations and Substitutions 4 - 4 - 4 Dispute Resolution 5 4 5 4 5 Holding and Using Posted Collateral 6 - 6 - 6 Transfer of Title, No Security Interest - 5 - 5 - Events of Default 7 6 7 6 7 Rights and Remedies 8 - 8 - 8 Representations 9 7 9 7 9 Expenses 10 8 10 8 10 Miscellaneous 11 9 11 9 11 Definitions 12 10 12 10 12 Elections and Variables 13 11 13 11 13 Tell me more Sign up for our newsletter — or just get in touch: for ½ a weekly 🍺 you get to consult JC. Ask about it here.

Content and comparisons

The bit you fill out in a your credit support annex to make it work. It is all in a rather sacred, standardised format, which differs marginally through the different versions of the CSA. Some of the stuff relates to Base Currency, and each other Eligible Currency and so on (or just Base Currency, if you are on the 1994 NY CSA), Eligible Credit Support, Thresholds, Minimum Transfer Amounts and so on.

Some of it gets a little more elaborate later on, but generally speaking it isn’t anything like as gruesome or torturously negotiated as the Schedule to the ISDA Master Agreement.

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Summary

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See also

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References

Para 11 Elections and Variables

Paragraph 11(a): Base Currency and Eligible Currency
Paragraph 11(b): Credit Support Obligations

Paragraph 11(b)(i): Delivery Amount, Return Amount and Credit Support Amount

Paragraph 11(b)(i)(A): Delivery Amount

Paragraph 11(b)(i)(B): Return Amount

Paragraph 11(b)(i)(C): Credit Support Amount

Paragraph 11(b)(ii): Eligible Credit Support

Paragraph 11(b)(iii): Thresholds

Paragraph 11(b)(iii)(A): Independent Amount

Paragraph 11(b)(iii)(B): Threshold

Paragraph 11(b)(iii)(C): Minimum Transfer Amount

Paragraph 11(b)(iii)(D): Rounding

Paragraph 11(c): Valuation and Timing

Paragraph 11(c)(i): Valuation Agent

Paragraph 11(c)(ii): Valuation Date

Paragraph 11(c)(iii): Valuation Time

Paragraph 11(c)(iv): Notification Time

Paragraph 11(d): Exchange Date
Paragraph 11(e): Dispute Resolution

Paragraph 11(e)(i): Resolution Time

Paragraph 11(e)(ii): Value (dispute resolution)

Paragraph 11(e)(iii): Alternative

Paragraph 11(f): Distributions and Interest Amount

Paragraph 11(f)(i): Interest Rate

Paragraph 11(f)(ii): Transfer of Interest Amount

Paragraph 11(f)(iii): Alternative to Interest Amount

Paragraph 11(g): Addresses for Transfers