Template:2002 ISDA Equity Derivatives Definitions 12.9(b)(iv): Difference between revisions
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:{{eqderivprov|12.9(b)(iv)}} If “'''{{eqderivprov|Loss of Stock Borrow}}'''” is specified in the related {{eqderivprov|Confirmation}} to be applicable to a {{eqderivprov|Transaction}}, then upon the occurrence of such an event the {{eqderivprov|Hedging Party}} may give notice that a {{eqderivprov|Loss of Stock Borrow}} has occurred to the {{eqderivprov|Non-Hedging Party}}, who may (A) lend the {{eqderivprov|Hedging Party}}, subject to the conditions below, {{eqderivprov|Shares}} in an amount equal to the {{eqderivprov|Hedging Shares}} at a rate equal to or less than the {{eqderivprov|Maximum Stock Loan Rate}} or (B) refer the {{eqderivprov|Hedging Party}} to a {{eqderivprov|Lending Party}} that will lend the {{eqderivprov|Hedging Party}} {{eqderivprov|Shares}} in an amount equal to the {{eqderivprov|Hedging Shares}} at a rate equal to or less than the {{eqderivprov|Maximum Stock Loan Rate}}, in each case within two {{eqderivprov|Scheduled Trading Days}} of receipt of the notice of {{eqderivprov|Loss of Stock Borrow}}. If neither the {{eqderivprov|Non-Hedging Party}} nor the {{eqderivprov|Lending Party}} lends {{eqderivprov|Shares}} in the amount of the {{eqderivprov|Hedging Shares}} or a satisfactory {{eqderivprov|Lending Party}} is not identified within this period, the {{eqderivprov|Hedging Party}} may give notice that it elects to terminate the {{eqderivprov|Transaction}}, specifying the date of such termination, which may be the same day that the notice of termination is effective. The {{eqderivprov|Determining Party}} will then determine the {{eqderivprov|Cancellation Amount}} payable by one party to the other. <br> | ::{{eqderivprov|12.9(b)(iv)}} If “'''{{eqderivprov|Loss of Stock Borrow}}'''” is specified in the related {{eqderivprov|Confirmation}} to be applicable to a {{eqderivprov|Transaction}}, then upon the occurrence of such an event the {{eqderivprov|Hedging Party}} may give notice that a {{eqderivprov|Loss of Stock Borrow}} has occurred to the {{eqderivprov|Non-Hedging Party}}, who may (A) lend the {{eqderivprov|Hedging Party}}, subject to the conditions below, {{eqderivprov|Shares}} in an amount equal to the {{eqderivprov|Hedging Shares}} at a rate equal to or less than the {{eqderivprov|Maximum Stock Loan Rate}} or (B) refer the {{eqderivprov|Hedging Party}} to a {{eqderivprov|Lending Party}} that will lend the {{eqderivprov|Hedging Party}} {{eqderivprov|Shares}} in an amount equal to the {{eqderivprov|Hedging Shares}} at a rate equal to or less than the {{eqderivprov|Maximum Stock Loan Rate}}, in each case within two {{eqderivprov|Scheduled Trading Days}} of receipt of the notice of {{eqderivprov|Loss of Stock Borrow}}. If neither the {{eqderivprov|Non-Hedging Party}} nor the {{eqderivprov|Lending Party}} lends {{eqderivprov|Shares}} in the amount of the {{eqderivprov|Hedging Shares}} or a satisfactory {{eqderivprov|Lending Party}} is not identified within this period, the {{eqderivprov|Hedging Party}} may give notice that it elects to terminate the {{eqderivprov|Transaction}}, specifying the date of such termination, which may be the same day that the notice of termination is effective. The {{eqderivprov|Determining Party}} will then determine the {{eqderivprov|Cancellation Amount}} payable by one party to the other. <br> | ||
Latest revision as of 12:02, 13 September 2018
- 12.9(b)(iv) If “Loss of Stock Borrow” is specified in the related Confirmation to be applicable to a Transaction, then upon the occurrence of such an event the Hedging Party may give notice that a Loss of Stock Borrow has occurred to the Non-Hedging Party, who may (A) lend the Hedging Party, subject to the conditions below, Shares in an amount equal to the Hedging Shares at a rate equal to or less than the Maximum Stock Loan Rate or (B) refer the Hedging Party to a Lending Party that will lend the Hedging Party Shares in an amount equal to the Hedging Shares at a rate equal to or less than the Maximum Stock Loan Rate, in each case within two Scheduled Trading Days of receipt of the notice of Loss of Stock Borrow. If neither the Non-Hedging Party nor the Lending Party lends Shares in the amount of the Hedging Shares or a satisfactory Lending Party is not identified within this period, the Hedging Party may give notice that it elects to terminate the Transaction, specifying the date of such termination, which may be the same day that the notice of termination is effective. The Determining Party will then determine the Cancellation Amount payable by one party to the other.
- 12.9(b)(iv) If “Loss of Stock Borrow” is specified in the related Confirmation to be applicable to a Transaction, then upon the occurrence of such an event the Hedging Party may give notice that a Loss of Stock Borrow has occurred to the Non-Hedging Party, who may (A) lend the Hedging Party, subject to the conditions below, Shares in an amount equal to the Hedging Shares at a rate equal to or less than the Maximum Stock Loan Rate or (B) refer the Hedging Party to a Lending Party that will lend the Hedging Party Shares in an amount equal to the Hedging Shares at a rate equal to or less than the Maximum Stock Loan Rate, in each case within two Scheduled Trading Days of receipt of the notice of Loss of Stock Borrow. If neither the Non-Hedging Party nor the Lending Party lends Shares in the amount of the Hedging Shares or a satisfactory Lending Party is not identified within this period, the Hedging Party may give notice that it elects to terminate the Transaction, specifying the date of such termination, which may be the same day that the notice of termination is effective. The Determining Party will then determine the Cancellation Amount payable by one party to the other.