Template:ISDA Master Agreement 1992 2(c): Difference between revisions
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{{isdaprov|Netting}}. If on any date amounts would otherwise be payable:— <br> | {{isdaprov|2(c)}} '''{{isdaprov|Netting}}'''. If on any date amounts would otherwise be payable:— <br> | ||
:(i) in the same currency; and <br> | :(i) in the same currency; and <br> | ||
:(ii) in respect of the same {{isdaprov|Transaction}}, <br> | :(ii) in respect of the same {{isdaprov|Transaction}}, <br> | ||
by each party to the other, then, on such date, each party’s obligation to make payment of any such amount <br>will be automatically satisfied and discharged and, if the aggregate amount that would otherwise have been <br>payable by one party exceeds the aggregate amount that would otherwise have been payable by the other <br>party, replaced by an obligation upon the party by whom the larger aggregate amount would have been <br>payable to pay to the other party the excess of the larger aggregate amount over the smaller aggregate amount. <br>The parties may elect in respect of two or more {{isdaprov|Transactions}} that a net amount will be determined in respect <br>of all amounts payable on the same date in the same currency in respect of such {{isdaprov|Transactions}}, regardless of <br>whether such amounts are payable in respect of the same {{isdaprov|Transaction}}. The election may be made in the <br>{{isdaprov|Schedule}} or a {{isdaprov|Confirmation}} by specifying that subparagraph (ii) above will not apply to the {{isdaprov|Transactions}} <br>identified as being subject to the election, together with the starting date (in which case subparagraph {{isdaprov|2(c)(ii)}} <br>above will not, or will cease to, apply to such {{isdaprov|Transactions}} from such date). This election may be made <br>separately for different groups of {{isdaprov|Transactions}} and will apply separately to each pairing of {{isdaprov|Offices}} through <br>which the parties make and receive payments or deliveries. <br> | by each party to the other, then, on such date, each party’s obligation to make payment of any such amount <br>will be automatically satisfied and discharged and, if the aggregate amount that would otherwise have been <br>payable by one party exceeds the aggregate amount that would otherwise have been payable by the other <br>party, replaced by an obligation upon the party by whom the larger aggregate amount would have been <br>payable to pay to the other party the excess of the larger aggregate amount over the smaller aggregate amount. <br>The parties may elect in respect of two or more {{isdaprov|Transactions}} that a net amount will be determined in respect <br>of all amounts payable on the same date in the same currency in respect of such {{isdaprov|Transactions}}, regardless of <br>whether such amounts are payable in respect of the same {{isdaprov|Transaction}}. The election may be made in the <br>{{isdaprov|Schedule}} or a {{isdaprov|Confirmation}} by specifying that subparagraph (ii) above will not apply to the {{isdaprov|Transactions}} <br>identified as being subject to the election, together with the starting date (in which case subparagraph {{isdaprov|2(c)(ii)}} <br>above will not, or will cease to, apply to such {{isdaprov|Transactions}} from such date). This election may be made <br>separately for different groups of {{isdaprov|Transactions}} and will apply separately to each pairing of {{isdaprov|Offices}} through <br>which the parties make and receive payments or deliveries. <br> | ||
Revision as of 09:57, 16 October 2012
2(c) Netting. If on any date amounts would otherwise be payable:—
- (i) in the same currency; and
- (ii) in respect of the same Transaction,
by each party to the other, then, on such date, each party’s obligation to make payment of any such amount
will be automatically satisfied and discharged and, if the aggregate amount that would otherwise have been
payable by one party exceeds the aggregate amount that would otherwise have been payable by the other
party, replaced by an obligation upon the party by whom the larger aggregate amount would have been
payable to pay to the other party the excess of the larger aggregate amount over the smaller aggregate amount.
The parties may elect in respect of two or more Transactions that a net amount will be determined in respect
of all amounts payable on the same date in the same currency in respect of such Transactions, regardless of
whether such amounts are payable in respect of the same Transaction. The election may be made in the
Schedule or a Confirmation by specifying that subparagraph (ii) above will not apply to the Transactions
identified as being subject to the election, together with the starting date (in which case subparagraph 2(c)(ii)
above will not, or will cease to, apply to such Transactions from such date). This election may be made
separately for different groups of Transactions and will apply separately to each pairing of Offices through
which the parties make and receive payments or deliveries.