Template:Nutshell EUA Annex (d)(i)(4): Difference between revisions

Revision as of 13:37, 27 June 2022

(d)(i)(4) Settlement Disruption Event

(A) Notification: Either party may notify the other party in writing of a Settlement Disruption Event and the impacted Transactions. If the affected party is the one giving notice, it must also give details of the Settlement Disruption Event and a non-binding estimate of the extent and expected duration of its resultant inability to perform.

(B) Effect: Upon a Settlement Disruption Event both parties’ olibgations will be suspended, subject to Continuing Settlement Disruption Event below, until the Settlement Disruption Event is no longer preventing settlement. During the Settlement Disruption Event, the affected party must continue to use all reasonable endeavours to overcome it.

(C) Delayed Performance: Subject to Continuing Settlement Disruption Event below, once the Settlement Disruption Event no longer prevents settlement, both parties must, promptly and within two Delivery Business Days, resume their obligations under the relevant Transactions.

(D) Continuing Settlement Disruption Event: Where a Settlement Disruption Event continues:

(I) for 9 Delivery Business Days after the originally scheduled Delivery Date; or, if shorter:

(II) for the period ending on a Reconciliation Deadline falling on after the originally scheduled Delivery Date; or, if shorter:

(III) for the period ending on the day 3 Delivery Business Days before the End of Phase Reconciliation Deadline falling on or after the originally scheduled Delivery Date,

then at the end of the relevant period, an Illegality will occur where the relevant EU Emissions Allowance Transaction is the sole Affected Transaction, both parties are Affected Parties, no Waiting Period will apply and, if an Early Termination Date results, then, when determining any Early Termination Amount payable in respect of that Early Termination Date:

(i) if “Payment on Termination for Settlement Disruption” applies the requirement to perform the suspended obligations will resume on the Early Termination Date; or

(ii) if “Payment on Termination for Settlement Disruption” does not apply, the parties will have no further delivery or payment obligations under the Transaction after the Settlement Disruption Event (other than in respect of any Unpaid Amounts); provided that:

(i) Delivering Party must promptly refund to Receiving Party any amount Receiving Party paid under any Allowance Forward Transaction or Call; and

(ii) Receiving Party must promptly refund to Delivering Party any amount Delivering Party paid under a Put

other than in respect of delivered Allowances, together with interest on that amount in the same currency as that amount for the period from (and including) the date that amount was paid to (but excluding) the date of termination of the Transaction, at the rate certified by the party required to refund the amount to be a rate offered to such party by a major bank in a relevant interbank market for overnight deposits in the applicable currency, such bank to be selected in good faith by that party for purposes of obtaining a representative rate that will reasonably reflect conditions prevailing at the time in the relevant market.

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 :(B)	'''Effect''': Upon a {{euaprov|Settlement Disruption Event}} both parties’ olibgations will be suspended, subject to {{euaprov|Continuing Settlement Disruption Event}} below, until the {{euaprov|Settlement Disruption Event}} is no longer preventing settlement. During the {{euaprov|Settlement Disruption Event}}, the affected party must continue to use all reasonable endeavours to overcome it.
 :(C)	'''Delayed Performance''': Subject to {{euaprov|Continuing Settlement Disruption Event}} below, once the {{euaprov|Settlement Disruption Event}} no longer prevents settlement, both parties must, promptly and within two {{euaprov|Delivery Business Day}}s, resume their obligations under the relevant {{isdaprov|Transaction}}s.
-:(D)	'''{{euaprov|Continuing Settlement Disruption Event}}''': Where a{{euaprov|Settlement Disruption Event}} continues:
+:(D)	'''{{euaprov|Continuing Settlement Disruption Event}}''': Where a {{euaprov|Settlement Disruption Event}} continues:
-::(I) during the period ending 9 {{euaprov|Delivery Business Day}}s after the originally scheduled {{euaprov|Delivery Date}}; or
+::(I) for 9 {{euaprov|Delivery Business Day}}s after the originally scheduled {{euaprov|Delivery Date}}; or, if shorter:
-::(II) if such 9 {{euaprov|Delivery Business Day}} period would end after the {{euaprov|Reconciliation Deadline}} on or immediately following the original date that, but for the {{euaprov|Settlement Disruption Event}}, would have been the {{euaprov|Delivery Date}} for an {{euaprov|EU Emissions Allowance Transaction}}, during the period ending on that {{euaprov|Reconciliation Deadline}}; or
+::(II) for the period ending on a {{euaprov|Reconciliation Deadline}} falling on after the originally scheduled {{euaprov|Delivery Date}}; or, if shorter:
-::(III)	if such 9 {{euaprov|Delivery Business Day}} period would end after the day that is 3 {{euaprov|Delivery Business Day}}s preceding the {{euaprov|End of Phase Reconciliation Deadline}} on or immediately following the original date that, but for the {{euaprov|Settlement Disruption Event}}, would have been the {{euaprov|Delivery Date}} for an {{euaprov|EU Emissions Allowance Transaction}}, during the period ending on the day that is 3 {{euaprov|Delivery Business Day}}s preceding that {{euaprov|End of Phase Reconciliation Deadline}},
+::(III)	for the period ending on the day 3 {{euaprov|Delivery Business Day}}s before the {{euaprov|End of Phase Reconciliation Deadline}} falling on or after the originally scheduled {{euaprov|Delivery Date}},
-:then on that 9th {{euaprov|Delivery Business Day}}, {{euaprov|Reconciliation Deadline}} or day that is 3 {{euaprov|Delivery Business Day}}s preceding the {{euaprov|End of Phase Reconciliation Deadline}} (as the case may be), an [Additional Termination Event][Illegality]<ref>If the form of Master Agreement in which this Part is included is a {{1992ma}} the parties should specify “{{isdaprov|Additional Termination Event}}” or, if the form of Master Agreement which the Confirmation supplements is an {{2002ma}} the parties should specify “{{isdaprov|Illegality}}”.</ref> shall be deemed to have occurred in respect of which the relevant {{euaprov|EU Emissions Allowance Transaction}} is the sole Affected Transaction, both parties are Affected Parties[, no Waiting Period will apply] and, if an {{isdaprov|Early Termination Date}} results from that {{isdaprov|Termination Event}}, then, for purposes of determining any amount payable under Section {{isdaprov|6(e)}} in respect of that {{isdaprov|Early Termination Date}}:
+:then at the end of the relevant period, an {{isdaprov|Illegality}} will occur where the relevant {{euaprov|EU Emissions Allowance Transaction}} is the sole {{isdaprov|Affected Transaction}}, both parties are {{isdaprov|Affected Parties}}, no {{isdaprov|Waiting Period}} will apply and, if an {{isdaprov|Early Termination Date}} results, then, when determining any {{isdaprov|Early Termination Amount}} payable in respect of that {{isdaprov|Early Termination Date}}:
-::(i) if “Payment on Termination for Settlement Disruption” is specified to be applicable in the Annex to this Part 5 or the Confirmation for the relevant {{euaprov|EU Emissions Allowance Transaction}}, it will be deemed that the requirement to perform the suspended obligations resumed on the {{isdaprov|Early Termination Date}}; or
+::(i) if “Payment on Termination for Settlement Disruption” applies the requirement to perform the suspended obligations will resume on the {{isdaprov|Early Termination Date}}; or
-::(ii) if “Payment on Termination for Settlement Disruption” is specified to be inapplicable in the Annex to this Part or the Confirmation for the relevant {{euaprov|EU Emissions Allowance Transaction}}, it will be deemed that the parties had no further delivery or payment obligations in respect of the {{euaprov|EU Emissions Allowance Transaction}} after the occurrence of the {{euaprov|Settlement Disruption Event}} (other than in respect of any payment due by one party in connection with delivery obligations already performed by the other party); provided, however, that
+::(ii) if “Payment on Termination for Settlement Disruption” does not apply, the parties will have no further delivery or payment obligations under the {{isdaprov|Transaction}} after the {{euaprov|Settlement Disruption Event}} (other than in respect of any {{isdaprov|Unpaid Amounts}}); provided that:
-:::(i) {{euaprov|Delivering Party}} shall promptly refund to {{euaprov|Receiving Party}} any amount that may have been paid by {{euaprov|Receiving Party}} in respect of the {{euaprov|EU Emissions Allowance Transaction}} that is an {{euaprov|Allowance Forward Transaction}} or a Call and
+:::(i) {{euaprov|Delivering Party}} must promptly refund to {{euaprov|Receiving Party}} any amount {{euaprov|Receiving Party}} paid under any {{euaprov|Allowance Forward Transaction}} or {{euaprov|Call}}; and
-:::(ii) {{euaprov|Receiving Party}} shall promptly refund to {{euaprov|Delivering Party}} any amount that may have been paid by {{euaprov|Delivering Party}} in respect of an {{euaprov|EU Emissions Allowance Transaction}} that is a {{euaprov|Put}} (in each case, other than in respect of delivered {{euaprov|Allowance}}s) together with interest on that amount in the same currency as that amount for the period from (and including) the date that amount was paid to (but excluding) the date of termination of such {{euaprov|EU Emissions Allowance Transaction}}, at the rate certified by the party required to refund the amount to be a rate offered to such party by a major bank in a relevant interbank market for overnight deposits in the applicable currency, such bank to be selected in good faith by that party for purposes of obtaining a representative rate that will reasonably reflect conditions prevailing at the time in the relevant market.
+:::(ii) {{euaprov|Receiving Party}} must promptly refund to {{euaprov|Delivering Party}} any amount {{euaprov|Delivering Party}} paid under a {{euaprov|Put}}
+::other than in respect of delivered {{euaprov|Allowance}}s, together with interest on that amount in the same currency as that amount for the period from (and including) the date that amount was paid to (but excluding) the date of termination of the {{isdaprov|Transaction}}, at the rate certified by the party required to refund the amount to be a rate offered to such party by a major bank in a relevant interbank market for overnight deposits in the applicable currency, such bank to be selected in good faith by that party for purposes of obtaining a representative rate that will reasonably reflect conditions prevailing at the time in the relevant market.

Template:Nutshell EUA Annex (d)(i)(4): Difference between revisions

Revision as of 13:37, 27 June 2022

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