From The Jolly Contrarian
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Tags: Replaced Manual revert |
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| {{isda 6(b)(iv) comp|isdaprov}} | | {{isda 6(b)(iv) comp|isdaprov}} |
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| The additions for {{isdaprov|Illegality}} and {{isdaprov|Force Majeure}} in the {{2002ma}} afford spectacular insight into the paranoid mind of {{icds}}, and the sort of rabbit hole one can find oneself falling down if one tries to over-think disaster scenarios. The contingencies the new wording addresses — none of which really bear much resemblance to the commercial world — are as follows:
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| *What happens if a party early terminates only some, but not all, {{isdaprov|Affected Transaction}}s — which, sure, it is entitled to do but nonetheless, in most cases, would be a [[dick move]]: here the terminating party must give two extra {{isdaprov|Local Business Day}}s’ notice over what it would have to give if it were terminating all {{isdaprov|Affected Transaction}}s, to allow the {{isdaprov|Affected Part}}y to respond to the notice closing out the remaining {{isdaprov|Affected Transaction}}s.
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| *Being clear that where an {{isdaprov|Illegality}} or {{isdaprov|Force Majeure}} relates to a {{isdaprov|Credit Support Document}}, only the beneficiary<ref> that is, the counterparty.</ref> of the afforded by that {{isdaprov|Credit Support Document}} can call for early termination. This stands to reason since the guaranteed party does not itself suffer any loss as a result of the failure of that credit support document, so should not be entitled to use it as an excuse to terminate Transactions (well — not unless and until that beneficiary has been a dick as contemplated above and terminated only ''some'' of the {{isdaprov|Affected Transaction}}s. At this point all bets are off.
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Latest revision as of 16:43, 5 January 2024