Template:Nutshell 1995 CSA 4(a)

4(a) Disputed Calculations or Valuations. If a Disputing Party disputes the Value of a Delivery Amount, Return Amount or any Eligible Credit Support:

(1) it must notify the other party and the Valuation Agent by close of business on the Local Business Day following receipt of the demand:

(2) It must transfer any undisputed amount by close of business on the Settlement Day following the demand;

(3) the parties will try resolve the dispute; and

(4) if they haven’t done so by the Resolution Time, then:

(i) Delivery Amounts and Return Amounts: the Valuation Agent will recalculate the Exposure and the Value as of the Recalculation Date by:

(A) keeping any part of the calculations that aren’t disputed;

(B) On the disputed portion of the Exposure seeking four (or if not available, fewer) mid-market quotations from Reference Market-makers and taking the average; provided that if no quotations are available the Valuation Agent’s original calculations will stand; and

(C) calculating theoutstanding Credit Support Balance per Paragraph 11(e)(ii);

(ii) Equivalent Credit Support recalculating the Value as of the date of transfer under Paragraph 11(e)(ii).

The Valuation Agent will notify each party by the Notification Time on the Local Business Day following the Resolution Time. Then the appropriate transfer has to be made.