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| Section {{{{{1}}}|1}} is a gentle introduction indeed to the dappled world of the {{isdama}}: much coming from the “goes without saying, but let’s say it anyway” dept of legal wordwrightery — a large department indeed, in the annals of modern legal practice. It starts getting a bit tasty in Section {{{{{1}}}|1(c)}} with the {{{{{1}}}|Single Agreement}}, but it’s not until the Section {{{{{1}}}|2(a)(iii)}} [[flawed asset]] provision that you’re properly in the [[ISDA ninja]] twilight zone. | | Section {{{{{1}}}|1}} is a gentle introduction indeed to the dappled world of the {{isdama}}. |
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| In a nutshell: DO NOT ADJUST THIS PROVISION. It does no-one any harm. How ''could'' it? | | In a nutshell, unless you are doing [[repackaging]]s — and even then, don’t get carried away — make sure you understand what Section {{{{{1}}}|1}} is there for and what it does, but don’t ''fiddle'' with it. |
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| ...''Unless'' you are writing an {{isdama}} for a [[repackaging vehicle]] issuing segregated, secured, [[limited recourse]] obligations. In that case you — and here I am supposing that “you” are the [[inhouse legal eagle]] at the arranging bank, or someone advising her — will have multiple {{isdaprov|Transaction}}s ''nominally'' between the same two entities — your employer and the [[SPV]] — but economically being totally distinct, relating as they do to discrete ring-fenced “Series” issued by the [[SPV]] and you absolutely do ''not'' want these to form a [[single agreement]] with each other, or net, or do anything ostensibly desirable like that.
| | {{Summ part {{{1}}}|1(a)}} |
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| Each {{isdaprov|Transaction}} (or ''set'' of {{isdaprov|Transaction}}s, if more than one {{isdaprov|Transaction}} attaches to a single Series) stands quite alone, should not be [[accelerated]], [[Cross default|cross-defaulted]], [[DUST - ISDA Provision|DUSTed]], closed out or heaven forbid [[Netting - ISDA Provision|netted]], just because some other {{isdaprov|Transaction}}, relating to another series, has gone [[Tetas arriba|''arriba'']]. Treat them as if each Series had its own distinct {{isdama}}, completely isolated, air-gapped and insulated against misadventure occurring in other {{isdama}}s the SPV has entered with you relating to other Series.<ref>Except as regards {{isdaprov|Bankruptcy}} of the SPV, but if you have structured your vehicle correctly, it won’t be able to go Bankrupt. And in any case the same bankruptcy event would be an independent Event of Default occurring under each discrete Master Agreement.</ref>
| | {{Summ part {{{1}}}|1(b)}} |
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| | {{Summ part {{{1}}}|1(c)}} |
Latest revision as of 11:53, 17 March 2024
Section {{{{{1}}}|1}} is a gentle introduction indeed to the dappled world of the ISDA Master Agreement.
In a nutshell, unless you are doing repackagings — and even then, don’t get carried away — make sure you understand what Section {{{{{1}}}|1}} is there for and what it does, but don’t fiddle with it.
{{Summ part {{{1}}}|1(a)}}
{{Summ part {{{1}}}|1(b)}}
{{Summ part {{{1}}}|1(c)}}