Section 2(a)(iii) - ISDA Provision: Difference between revisions

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===Amendment to Section 2(e) of the {{1992ma}} only ===
===Amendment to Section 2(e) of the {{1992ma}} only ===
NB there isn't a Section 2(e) in [[2002 ISDA Master]] - this amendment is purely to bring  the {{1992isda}}it in line with the 2002 provision on {{isdaprov|Interest and Compensation}}:''
{{isdaquote|{{ISDA Master Agreement 1992 2(e) Protocol}}|2(e)|1992}}
 
NB there isn't a Section 2(e) in [[2002 ISDA Master]] - this amendment is purely to bring  the {{1992isda}}it in line with the 2002 provision on {{isdaprov|Interest and Compensation}}.
   
   
{{isdaquote|{{isdaprov|2(e)}} '''{{isdaprov|Default Interest; Other Amounts}}'''. Prior to the occurrence or effective designation of an Early <br>
{{isdaprov|Termination Date}} in respect of the relevant {{isdaprov|Transaction}}, a party that defaults in the performance of any<br>
payment obligation will, to the extent permitted by law and subject to Section {{isdaprov|6(c)}}, be required to pay interest<br> (before as well as after judgment) on the overdue amount to the other party on demand in the same currency<br>
as such overdue amount, for the period from (and including) the original due date for payment to (but<br>
excluding) the date of actual payment, at the {{isdaprov|Default Rate}}. Such interest will be calculated on the basis of<br>
daily compounding and the actual number of days elapsed. If, prior to the occurrence or effective designation<br>
of an {{isdaprov|Early Termination Date}} in respect of the relevant {{isdaprov|Transaction}}, a party defaults in the performance of<br>
any obligation required to be settled by delivery, it will compensate the other party on demand if and to the<br>
extent provided for in the relevant {{isdaprov|Confirmation}} or elsewhere in this {{isdaprov|Agreement}}. '''If a party does not pay '''<br>
'''any amount that, but for Section {{isdaprov|2(a)(iii)}}, would have been payable, it will, to the extent permitted by'''<br>
'''applicable law and subject to Section {{isdaprov|6(c)}}, pay interest (before as well as after judgment) on that'''<br>
'''amount to the other party on demand (after such amount becomes payable) in the same currency as the amount,'''<br>
'''for the period from (and including) the date the amount would, but for Section {{isdaprov|2(a)(iii)}}, have been payable'''<br>
'''to (but excluding) the date the amount actually becomes payable, at the rate  certified by the payer to be a'''<br>
'''rate offered to the payer by a major bank in a relevant interbank market for overnight deposits in the'''<br>
'''applicable currency, such bank to be selected in good faith by the payer for the purpose of obtaining'''<br>
'''a representative rate that will reasonably reflect conditions prevailing at the time in that relevant market.'''|2(e|1992}}
===Additional {{isdaprov|Definitions}} in Section 14===
===Additional {{isdaprov|Definitions}} in Section 14===
  {{isdaquote|"'''{{isdaprov|Terminated Transactions}}'''" means, with respect to any {{isdaprov|Early Termination Date}}, (a) if resulting from an {{isdaprov|Illegality}} or <br>
  {{isdaquote|"'''{{isdaprov|Terminated Transactions}}'''" means, with respect to any {{isdaprov|Early Termination Date}}, (a) if resulting from an {{isdaprov|Illegality}} or <br>
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