Template:Csa Transfer of Title comp: Difference between revisions
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Paragraphs {{{{{1}}}|5(a)}} and {{{{{1}}}|5(b)}} and {{{{{1}}}|5(c)(i)}} is identical in the {{csa}} and the {{vmcsa}}. It is only in Paragraph {{csaprov|5(c)(ii)}} that things start getting a bit funky, as this {{diff|85267|85266}} illustrates. | Paragraphs {{{{{1}}}|5(a)}} and {{{{{1}}}|5(b)}} and {{{{{1}}}|5(c)(i)}} is identical in the {{csa}} and the {{vmcsa}}. It is only in Paragraph {{csaprov|5(c)(ii)}} that things start getting a bit funky, as this {{diff|85267|85266}} illustrates. | ||
5(c)( | Paragraph {{csaprov|5(c)(i)}} is self-contained. It does not need adjustment in Paragraph {{csaprov|11}}: the reference to “Distributions” in the heading of Paragraph {{csaprov|11(f)}} simply reflects the heading of Paragraph {{csaprov|5(c)}}, and does not imply you need to add anything. | ||
Paragraph {{ | Paragraph {{{{{1}}}|5(c)(ii)}} and beyond in the {{vmcsa}} is an utter horror show and is broadly the same as the equivalent provision in the New York law VM CSA. There is a {{diff|85272|85271}} of that to look at too. Here {{icds}}, bless them, contrived in Para {{{{{1}}}|5(c)(ii)}} to design an option no-one in their right mind would have wanted, namely to choose between {{{{{1}}}|Interest Transfer}} — in which you can have interest that accrues on your {{{{{1}}}|Credit Support Balance}} periodically paid to you — or {{{{{1}}}|Interest Amount}}, in which interest accruals are just capitalised and added to the {{{{{1}}}|Credit Support Balance}}, effectively folding all that into the weft and warp of daily transfers that you will be making anyway. | ||
Latest revision as of 15:17, 8 May 2024
Paragraphs {{{{{1}}}|5(a)}} and {{{{{1}}}|5(b)}} and {{{{{1}}}|5(c)(i)}} is identical in the 1995 CSA and the 2016 VM CSA. It is only in Paragraph 5(c)(ii) that things start getting a bit funky, as this comparison illustrates.
Paragraph 5(c)(i) is self-contained. It does not need adjustment in Paragraph 11: the reference to “Distributions” in the heading of Paragraph 11(f) simply reflects the heading of Paragraph 5(c), and does not imply you need to add anything.
Paragraph {{{{{1}}}|5(c)(ii)}} and beyond in the 2016 VM CSA is an utter horror show and is broadly the same as the equivalent provision in the New York law VM CSA. There is a comparison of that to look at too. Here ISDA’s crack drafting squad™, bless them, contrived in Para {{{{{1}}}|5(c)(ii)}} to design an option no-one in their right mind would have wanted, namely to choose between {{{{{1}}}|Interest Transfer}} — in which you can have interest that accrues on your {{{{{1}}}|Credit Support Balance}} periodically paid to you — or {{{{{1}}}|Interest Amount}}, in which interest accruals are just capitalised and added to the {{{{{1}}}|Credit Support Balance}}, effectively folding all that into the weft and warp of daily transfers that you will be making anyway.