Template:Isda 6(b)(iii) comp: Difference between revisions
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Amwelladmin (talk | contribs) (Created page with "Be careful here: Under the {{1992ma}}, if your {{isdaprov|Failure To Pay}} is also an {{isdaprov|Illegality}} it is treated as an {{isdaprov|Illegality}}: if there are two {{i...") |
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Be careful here: Under the {{1992ma}}, if your {{isdaprov|Failure | Be careful here: Under the {{1992ma}}, if your {{isdaprov|Failure to Pay}} is also an {{isdaprov|Illegality}} it is treated as an {{isdaprov|Illegality}}: if there are two {{isdaprov|Affected Parties}} you will face a significant delay when closing out. A bit of a {{t|trick for young players}}. | ||
Note also that reference to {{isdaprov|Illegality}} has been excised from the {{2002ma}} version. They changed this because, in practice, it turned out to too be hard to implement a transfer or amendment ''after'' an {{isdaprov|Illegality}}. Folks realised that if an {{isdaprov|Illegality}} happens you don’t want to have to wait 30 days to terminate, especially if you can’t rely on {{isdaprov|2(a)(iii)}} to withhold payments in the meantime. | Note also that reference to {{isdaprov|Illegality}} has been excised from the {{2002ma}} version. They changed this because, in practice, it turned out to too be hard to implement a transfer or amendment ''after'' an {{isdaprov|Illegality}}. Folks realised that if an {{isdaprov|Illegality}} happens you don’t want to have to wait 30 days to terminate, especially if you can’t rely on {{isdaprov|2(a)(iii)}} to withhold payments in the meantime. | ||
Latest revision as of 17:58, 12 April 2020
Be careful here: Under the 1992 ISDA, if your Failure to Pay is also an Illegality it is treated as an Illegality: if there are two Affected Parties you will face a significant delay when closing out. A bit of a trick for young players.
Note also that reference to Illegality has been excised from the 2002 ISDA version. They changed this because, in practice, it turned out to too be hard to implement a transfer or amendment after an Illegality. Folks realised that if an Illegality happens you don’t want to have to wait 30 days to terminate, especially if you can’t rely on 2(a)(iii) to withhold payments in the meantime.