Template:ISDA English Law Credit Support Annex 1995 4(a): Difference between revisions
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{{csaprov|4(a)}} '''{{csaprov|Disputed Calculations or Valuations}}'''. If a party (a “'''{{csaprov|Disputing Party}}'''") reasonably disputes (I) the | {{csaprov|4(a)}} '''{{csaprov|Disputed Calculations or Valuations}}'''. If a party (a “'''{{csaprov|Disputing Party}}'''") reasonably disputes (I) the {{csaprov|Valuation Agent}}’s calculation of a {{csaprov|Delivery Amount}} or a {{csaprov|Return Amount}} or (II) the {{csaprov|Value}} of any transfer of {{csaprov|Eligible Credit Support}} or {{csaprov|Equivalent Credit Support}}, then: | ||
:(1) the {{csaprov|Disputing Party}} will notify the other party and the {{csaprov|Valuation Agent}} (if the Valuation | :(1) the {{csaprov|Disputing Party}} will notify the other party and the {{csaprov|Valuation Agent}} (if the Valuation Agent is not the other party) not later than the close of business on the {{csaprov|Local Business Day}} following, in the case of (I) above, the date that the demand is received under Paragraph {{csaprov|2}} or, in the case of (II) above, the date of transfer; | ||
:(2) in the case of (I) above, the appropriate party will transfer the undisputed amount to the | :(2) in the case of (I) above, the appropriate party will transfer the undisputed amount to the other party not later than the close of business on the {{csaprov|Settlement Day}} following the date that the demand is received under Paragraph {{csaprov|2}}; | ||
:(3) the parties will consult with each other in an attempt to resolve the dispute; and | :(3) the parties will consult with each other in an attempt to resolve the dispute; and | ||
:(4) if they fail to resolve the dispute by the Resolution Time, then: | :(4) if they fail to resolve the dispute by the Resolution Time, then: | ||
::(i) in the case of a dispute involving a {{csaprov|Delivery Amount}} or {{csaprov|Return Amount}}, unless | ::(i) in the case of a dispute involving a {{csaprov|Delivery Amount}} or {{csaprov|Return Amount}}, unless otherwise specified in Paragraph {{csaprov|11(c)}}, the {{csaprov|Valuation Agent}} will recalculate the {{csaprov|Exposure}} and the {{csaprov|Value}} as of the {{csaprov|Recalculation Date}} by: | ||
:::(A) utilising any calculations of that part of the {{csaprov|Exposure}} attributable to the | :::(A) utilising any calculations of that part of the {{csaprov|Exposure}} attributable to the {{isdaprov|Transactions}} that the parties have agreed are not in dispute; | ||
:::(B) calculating that part of the {{csaprov|Exposure}} attributable to the {{isdaprov|Transactions}} in | :::(B) calculating that part of the {{csaprov|Exposure}} attributable to the {{isdaprov|Transactions}} in dispute by seeking four actual quotations at mid-market from Reference Market-makers for purposes of calculating {{isdaprov|Market Quotation}}, and taking the arithmetic average of those obtained; provided that if four quotations are not available for a particular {{isdaprov|Transaction}}, then fewer than four quotations may be used for that {{isdaprov|Transaction}}, and if no quotations are available for a particular {{isdaprov|Transaction}}, then the {{csaprov|Valuation Agent}}’s original calculations will be used for the {{isdaprov|Transaction}}; and | ||
:::(C) utilising the procedures specified in Paragraph {{csaprov|11(e)(ii)}} for calculating the | :::(C) utilising the procedures specified in Paragraph {{csaprov|11(e)(ii)}} for calculating the {{csaprov|Value}}, if disputed, of the outstanding {{csaprov|Credit Support Balance}}; | ||
::(ii) in the case of a dispute involving the {{csaprov|Value}} of any transfer of Eligible Credit | ::(ii) in the case of a dispute involving the {{csaprov|Value}} of any transfer of Eligible Credit Support or {{csaprov|Equivalent Credit Support}}, the {{csaprov|Valuation Agent}} will recalculate the {{csaprov|Value}} as of the date of transfer pursuant to Paragraph {{csaprov|11(e)(ii)}}. | ||
Following a recalculation pursuant to this Paragraph, the {{csaprov|Valuation Agent}} will notify each party (or the | Following a recalculation pursuant to this Paragraph, the {{csaprov|Valuation Agent}} will notify each party (or the other party, if the {{csaprov|Valuation Agent}} is a party) as soon as possible but in any event not later than the {{csaprov|Notification Time}} on the {{csaprov|Local Business Day}} following the {{csaprov|Resolution Time}}. The appropriate party will, upon demand following such notice given by the {{csaprov|Valuation Agent}} or a resolution pursuant to (3) above and subject to Paragraph {{csaprov|3(a)}}, make the appropriate transfer. |