Template:Isda peod analysis

Grace periods and notice requirements for each {{{{{1}}}|Event of Default}}

A JC cut-out-and-keep™ guide. Useful if you are fretting about {{{{{1}}}|Potential Event of Default}}. Don’t feel embarrassed: we all do, every now and then, when spring is upon us.

• {{{{{1}}}|Failure to Pay or Deliver}} has both a short grace period and requires notice from the {{{{{1}}}|Non-defaulting Party}} before it becomes a full EOD;
• {{{{{1}}}|Breach of Agreement}} has an unusably, epochally long grace period — I mean thirty fricking days! — and requires notice from the {{{{{1}}}|Non-defaulting Party}} before it becomes a full EOD;
• {{{{{1}}}|Credit Support Default}} has no grace period or notice requirement, but there’s a good argument that any grace periods and notice requirements under the {{{{{1}}}|Credit Support Document}} in question would get pulled in by reference, so they are there in effect;
• {{{{{1}}}|Misrepresentation}} has neither a grace period or a notice requirement. The theory being a representation — any representation other than a tax one — being a statement inducing one to enter into the contract in the first place —is of such fundamental moment that its untruth justifies summary execution. Careful here, though, misrepresentations are a bit of a minefield to step through. See especially section {{{{{1}}}|3(d)}}.
• {{{{{1}}}|DUST}} references notice requirements and grace periods under the {{{{{1}}}|Specified Transaction}} (where there is has been a default) but not where it is a repudiation, but that kind of figures.
• {{{{{1}}}|Cross Default}}, that most absurd of all {{{{{1}}}|Events of Default}}, has no notice requirement, no grace period, and doesn't even require the lender of the {{{{{1}}}|Specified Indebtedness}} to have exercised a termination right — though any grace period under the {{{{{1}}}|Specified Indebtedness}} still applies.
• {{{{{1}}}|Bankruptcy}} has no notice requirement or grace period (indeed, on {{{{{1}}}|Automatic Termination Event}} applies it may happens even without the {{{{{1}}}|Non-defaulting Party}}’s knowledge), though there are some grace periods under the various tedious limbs of {{{{{1}}}|Bankruptcy}} definition, and these vary by edition of the ISDA Master Agreement;
• {{{{{1}}}|Merger Without Assumption}} has neither notice requirement or grace period — again not unreasonable, since a merger without assumption is tantamount to a repudiation of contract, and if you’re no longer playing the game, I don’t see why I should.