Threshold Amount - ISDA Provision: Difference between revisions

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{{fullanat2|isda|Threshold Amount|2002|Threshold Amount|1992}}
{{isdaanat|Threshold Amount}}
A key feature of the Cross Default definition in the {{isdama}}. This is the level over which accumulated [[indebtedness]] defaults comprise an {{isdaprov|Event of Default}}. Because of the [[snowball effect]] that a {{tag|cross default}} clause can have, it needs to be high. for a bank, typically 2 or 3% of [[shareholder’s equity]] or USD100,000,000 - for a fund an equivalent portion of [[NAV]].
A key feature of the {{isdaprov|Cross Default}} {{isdaprov|Event of Default}} in the {{isdama}}. This is the level over which accumulated [[indebtedness]] defaults comprise an {{isdaprov|Event of Default}}. Because of the [[snowball effect]] that a {{tag|cross default}} clause can have, it needs to be high. for a bank, typically 2 or 3% of [[shareholder’s equity]] or USD100,000,000 - for a fund an equivalent portion of [[NAV]].

Revision as of 19:44, 12 January 2020

ISDA Anatomy™


In a Nutshell Section Threshold Amount:

Threshold Amount” will be specified in the Schedule.
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2002 ISDA full text of Section Threshold Amount:

Threshold Amount” means the amount, if any, specified as such in the Schedule.
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Click here for the text of Section Threshold Amount in the 1992 ISDA

Index: Click to expand:Navigation
See ISDA Comparison for a comparison between the 1992 ISDA and the 2002 ISDA.
The Varieties of ISDA Experience
Subject 2002 (wikitext) 1992 (wikitext) 1987 (wikitext)
Preamble Pre Pre Pre
Interpretation 1 1 1
Obligns/Payment 2 2 2
Representations 3 3 3
Agreements 4 4 4
EODs & Term Events 5 Events of Default: FTPDBreachCSDMisrepDUSTCross DefaultBankruptcyMWA Termination Events: IllegalityFMTax EventTEUMCEUMATE 5 Events of Default: FTPDBreachCSDMisrepDUSTCross DefaultBankruptcyMWA Termination Events: IllegalityTax EventTEUMCEUMATE 5 Events of Default: FTPDBreachCSDMisrepDUSSCross DefaultBankruptcyMWA Termination Events: IllegalityTax EventTEUMCEUM
Early Termination 6 Early Termination: ET right on EODET right on TEEffect of DesignationCalculations; Payment DatePayments on ETSet-off 6 Early Termination: ET right on EODET right on TEEffect of DesignationCalculationsPayments on ETSet-off 6 Early Termination: ET right on EODET right on TEEffect of DesignationCalculationsPayments on ET
Transfer 7 7 7
Contractual Currency 8 8 8
Miscellaneous 9 9 9
Offices; Multibranch Parties 10 10 10
Expenses 11 11 11
Notices 12 12 12
Governing Law 13 13 13
Definitions 14 14 14
Schedule Schedule Schedule Schedule
Termination Provisions Part 1 Part 1 Part 1
Tax Representations Part 2 Part 2 Part 2
Documents for Delivery Part 3 Part 3 Part 3
Miscellaneous Part 4 Part 4 Part 4
Other Provisions Part 5 Part 5 Part 5
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A key feature of the Cross Default Event of Default in the ISDA Master Agreement. This is the level over which accumulated indebtedness defaults comprise an Event of Default. Because of the snowball effect that a cross default clause can have, it needs to be high. for a bank, typically 2 or 3% of shareholder’s equity or USD100,000,000 - for a fund an equivalent portion of NAV.