Expenses - ISDA Provision: Difference between revisions
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{{isdasnap|11|{{isdaprov|Expenses}} <br> A {{isdaprov|Defaulting Party}} will, on demand, indemnify and hold harmless the other party for and against all <br> reasonable out-of-pocket expenses, including legal fees and {{isdaprov|Stamp Tax}}, incurred by such other party by <br> reason of the enforcement and protection of its rights under this {{isdaprov|Agreement}} or any {{isdaprov|Credit Support Document}} <br> to which the {{isdaprov|Defaulting Party}} is a party or by reason of the early termination of any {{isdaprov|Transaction}}, including, <br> but not limited to, costs of collection. <br>|{{isdaprov|Expenses}} <br> A {{isdaprov|Defaulting Party}} will on demand indemnify and hold harmless the other party for and against all reasonable out-of- <br> pocket expenses, including legal fees, execution fees and {{isdaprov|Stamp Tax}}, incurred by such other party by reason of the <br> enforcement and protection of its rights under this {{isdaprov|Agreement}} or any {{isdaprov|Credit Support Document}} to which the <br> {{isdaprov|Defaulting Party}} is a party or by reason of the early termination of any {{isdaprov|Transaction}}, including, but not limited to, <br> costs of collection. <br> | {{isdasnap|11|{{isdaprov|Expenses}} <br> A {{isdaprov|Defaulting Party}} will, on demand, indemnify and hold harmless the other party for and against all <br> reasonable out-of-pocket expenses, including legal fees and {{isdaprov|Stamp Tax}}, incurred by such other party by <br> reason of the enforcement and protection of its rights under this {{isdaprov|Agreement}} or any {{isdaprov|Credit Support Document}} <br> to which the {{isdaprov|Defaulting Party}} is a party or by reason of the early termination of any {{isdaprov|Transaction}}, including, <br> but not limited to, costs of collection. <br>|{{isdaprov|Expenses}} <br> A {{isdaprov|Defaulting Party}} will on demand indemnify and hold harmless the other party for and against all reasonable out-of- <br> pocket expenses, including legal fees, execution fees and {{isdaprov|Stamp Tax}}, incurred by such other party by reason of the <br> enforcement and protection of its rights under this {{isdaprov|Agreement}} or any {{isdaprov|Credit Support Document}} to which the <br> {{isdaprov|Defaulting Party}} is a party or by reason of the early termination of any {{isdaprov|Transaction}}, including, but not limited to, <br> costs of collection. <br>}} | ||
==Commentary== | ==Commentary== | ||
Observers will note that, but for the odd comma, these two provisions are identical. And revolutionarily brief. Not that they couldn't be improved, of course; they just weren't. | Observers will note that, but for the odd comma, these two provisions are identical. And revolutionarily brief. Not that they couldn't be improved, of course; they just weren't. | ||
Revision as of 17:49, 13 July 2012
In gory detail
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1992 ISDA |
2002 ISDA |
Commentary
Observers will note that, but for the odd comma, these two provisions are identical. And revolutionarily brief. Not that they couldn't be improved, of course; they just weren't.
The Expenses referred to in this provision would not be captured by the definition of "Close Out Amount" or "Early Termination Amount" because, qed, they arise only once that amount has been determined and the non-defaulting party is in the process of collecting it.