Template:ISDA English Law Credit Support Deed 2018 3(c)(iii): Difference between revisions
Jump to navigation
Jump to search
Amwelladmin (talk | contribs) No edit summary |
Amwelladmin (talk | contribs) No edit summary |
||
| Line 1: | Line 1: | ||
3(c)(iii) '''{{imcsdprov|Margin Approach}}'''. The parties have agreed, in Paragraph {{imcsdprov|13}}, to implement one of the following approaches (each a “'''{{imcsdprov|Margin Approach}}'''”) with respect to the relationship between “'''{{imcsdprov|Margin Amount (IM)}}'''” and “'''{{imcsdprov|Margin Amount (IA)}}'''”. | {{imcsdprov|3(c)(iii)}} '''{{imcsdprov|Margin Approach}}'''. The parties have agreed, in Paragraph {{imcsdprov|13}}, to implement one of the following approaches (each a “'''{{imcsdprov|Margin Approach}}'''”) with respect to the relationship between “'''{{imcsdprov|Margin Amount (IM)}}'''” and “'''{{imcsdprov|Margin Amount (IA)}}'''”. | ||
:(A) If the “'''{{imcsdprov|Distinct Margin Flow (IM) Approach}}'''” is specified as applicable in Paragraph {{imcsdprov|13}}, the following provisions will apply: | :(A) If the “'''{{imcsdprov|Distinct Margin Flow (IM) Approach}}'''” is specified as applicable in Paragraph {{imcsdprov|13}}, the following provisions will apply: | ||
::(1) “'''{{imcsdprov|Credit Support Amount (IM)}}'''” means, with respect to a party as the {{imcsdprov|Chargor}}, for any {{imcsdprov|Calculation Date (IM)}}, (i) the {{imcsdprov|Margin Amount (IM)}} applicable to the {{imcsdprov|Chargor}}, if any, minus (ii) the {{imcsdprov|Chargor}}’s {{imcsdprov|Threshold (IM)}}; provided, however, that the {{imcsdprov|Credit Support Amount (IM)}} will be deemed to be zero whenever the calculation of the {{imcsdprov|Credit Support Amount (IM)}} yields a number less than zero. | ::(1) “'''{{imcsdprov|Credit Support Amount (IM)}}'''” means, with respect to a party as the {{imcsdprov|Chargor}}, for any {{imcsdprov|Calculation Date (IM)}}, (i) the {{imcsdprov|Margin Amount (IM)}} applicable to the {{imcsdprov|Chargor}}, if any, minus (ii) the {{imcsdprov|Chargor}}’s {{imcsdprov|Threshold (IM)}}; provided, however, that the {{imcsdprov|Credit Support Amount (IM)}} will be deemed to be zero whenever the calculation of the {{imcsdprov|Credit Support Amount (IM)}} yields a number less than zero. | ||
Revision as of 16:56, 4 March 2021
3(c)(iii) Margin Approach. The parties have agreed, in Paragraph 13, to implement one of the following approaches (each a “Margin Approach”) with respect to the relationship between “Margin Amount (IM)” and “Margin Amount (IA)”.
- (A) If the “Distinct Margin Flow (IM) Approach” is specified as applicable in Paragraph 13, the following provisions will apply:
- (1) “Credit Support Amount (IM)” means, with respect to a party as the Chargor, for any Calculation Date (IM), (i) the Margin Amount (IM) applicable to the Chargor, if any, minus (ii) the Chargor’s Threshold (IM); provided, however, that the Credit Support Amount (IM) will be deemed to be zero whenever the calculation of the Credit Support Amount (IM) yields a number less than zero.
- (2) No Amendment to Obligations in respect of Margin Amount (IA). The posting obligation of a Chargor in respect of any amount that constitutes a Margin Amount (IA) under any Other CSA shall not be affected or amended in any way by the provisions of this Deed.
- (B) If the “Allocated Margin Flow (IM/IA) Approach” is specified as applicable in Paragraph 13, the following provisions will apply:
- (1) “Credit Support Amount (IM)” means, with respect to a party as the Chargor, for any Calculation Date (IM), (i) the Margin Amount (IM) applicable to the Chargor, if any, minus (ii) the Chargor’s Threshold (IM); provided, however, that the Credit Support Amount (IM) will be deemed to be zero whenever the calculation of the Credit Support Amount (IM) yields a number less than zero.
- (2) Amendment to Obligations in respect of Margin Amount (IA). The posting obligation of a Chargor in respect of any amount that constitutes a Margin Amount (IA) under any Other CSA shall be reduced on an aggregate basis by the amount of the Chargor’s Credit Support Amount (IM); provided, however, that if, after such reduction, any such Margin Amount (IA) would be a negative amount, such Margin Amount (IA) will be deemed to be zero.
- (C) If the “Greater of Margin Flow (IM/IA) Approach” is specified as applicable in Paragraph 13, the following provisions will apply:
- (1) “Credit Support Amount (IM)” means, with respect to a party as the Chargor, for any Calculation Date (IM), the greater of (i)(A) the Margin Amount (IM) applicable to the Chargor, if any, minus (B) the Chargor’s Threshold (IM) and (ii) the Margin Amount (IA); provided, however, that the Credit Support Amount (IM) will be deemed to be zero whenever the calculation of the Credit Support Amount (IM) yields a number less than zero.
- (2) Amendment to Obligations in respect of Margin Amount (IA). The posting obligation of a Chargor in respect of any amount that constitutes a Margin Amount (IA) under any Other CSA, other than such obligations of a Chargor under this Deed, shall be reduced to zero.