From The Jolly Contrarian
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| {{fullanat2|isda|6(b)(iii)|2002|6(b)(iii)|1992}}
| | #redirect[[Right to Terminate Following Termination Event - ISDA Provision]] |
| 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.
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| ===Differences between {{1992ma}} and {{2002ma}}===
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| Note also that reference to Illegality has been excised from the {{2002ma}} version.
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| 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.
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| 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).
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Latest revision as of 17:26, 14 August 2024