Template:IETA Master Agreement 13.2: Difference between revisions
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{{ietaprov|13.2}} '''{{ietaprov|Force Majeure Termination Payment}}'''. If an FM Affected {{ietaprov|Transaction}} is terminated in accordance with Clause {{ietaprov|13.1}} ({{ietaprov|Force Majeure}} and {{ietaprov|Suspension Event}}), the Parties’ corresponding {{ietaprov|Transfer}} and acceptance obligations shall be released and discharged and the {{ietaprov|Force Majeure}} termination payment to be made between the Parties (if any) shall be calculated in accordance with paragraph (a), (b) or (c) below, as selected by the Parties in {{ietaprov|Schedule 2}} (‘‘{{ietaprov|Elections}}’’).<br> | {{ietaprov|13.2}} '''{{ietaprov|Force Majeure Termination Payment}}'''. If an FM Affected {{ietaprov|Transaction}} is terminated in accordance with Clause {{ietaprov|13.1}} ({{ietaprov|Force Majeure}} and {{ietaprov|Suspension Event}}), the Parties’ corresponding {{ietaprov|Transfer}} and acceptance obligations shall be released and discharged and the {{ietaprov|Force Majeure}} termination payment to be made between the Parties (if any) shall be calculated in accordance with paragraph (a), (b) or (c) below, as selected by the Parties in {{ietaprov|Schedule 2}} (‘‘{{ietaprov|Elections}}’’).<br> | ||
:{{ietaprov|13.2(a)}} No {{ietaprov|Termination Payment}}. No {{ietaprov|Force Majeure}} termination payment shall be made between Parties; provided, however, that the obligation to pay any {{ietaprov|Unpaid Amounts}} shall survive the termination of the {{ietaprov|FM Affected Transaction}}.<br> | :{{ietaprov|13.2(a)}} No {{ietaprov|Termination Payment}}. No {{ietaprov|Force Majeure}} termination payment shall be made between Parties; provided, however, that the obligation to pay any {{ietaprov|Unpaid Amounts}} shall survive the termination of the {{ietaprov|FM Affected Transaction}}.<br> | ||
:{{ietaprov|13.2(b)}} Two-way {{ietaprov|Market Quotation}} {{ietaprov|Termination Payment}}. Both Parties shall go into the market and obtain three (3) mid-market quotations in the Termination Currency from third party dealers for a replacement {{ietaprov|Transaction}} for the same amount of {{ietaprov|Period Traded Allowance}}s (without taking into account the current credit-worthiness of the {{ietaprov|Requesting Party}} or any existing {{ietaprov|Credit Support Document}}). Each Party will then calculate the average of the quotations it obtained and the amount payable shall be equal to (A) the sum of (I) one-half of the difference between the higher amount so determined (the Party determining the higher amount being “X”) and the lower amount so determined (the Party determining the lower amount being “Y”) and (II) any {{ietaprov|Unpaid Amounts}} owing to X less (B) any {{ietaprov|Unpaid Amounts}} owing to Y. If the resultant amount is a positive number, Y shall pay it to X; if it is a negative number, X shall pay the absolute value of such amount to Y. If three (3) mid- market quotations cannot be obtained, all quotations will be deemed to be zero.<br> | |||
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:{{ietaprov|13.2(c)}} Two-way Loss {{ietaprov|Termination Payment}}. Each Party will determine its {{ietaprov|Loss}} in respect of the FM Affected {{ietaprov|Transaction}} and an amount will be payable in the Termination Currency equal to one half of the difference between the {{ietaprov|Loss}} of the Party with the higher {{ietaprov|Loss}} (“X”) and the {{ietaprov|Loss}} of the Party with the lower {{ietaprov|Loss}} (“Y”). If the amount payable is a positive number, Y will pay it to X; if it is a negative number, X will pay the absolute value of such amount to Y.<br> | :{{ietaprov|13.2(c)}} Two-way Loss {{ietaprov|Termination Payment}}. Each Party will determine its {{ietaprov|Loss}} in respect of the FM Affected {{ietaprov|Transaction}} and an amount will be payable in the Termination Currency equal to one half of the difference between the {{ietaprov|Loss}} of the Party with the higher {{ietaprov|Loss}} (“X”) and the {{ietaprov|Loss}} of the Party with the lower {{ietaprov|Loss}} (“Y”). If the amount payable is a positive number, Y will pay it to X; if it is a negative number, X will pay the absolute value of such amount to Y.<br> | ||
Revision as of 10:05, 12 July 2023
13.2 Force Majeure Termination Payment. If an FM Affected Transaction is terminated in accordance with Clause 13.1 (Force Majeure and Suspension Event), the Parties’ corresponding Transfer and acceptance obligations shall be released and discharged and the Force Majeure termination payment to be made between the Parties (if any) shall be calculated in accordance with paragraph (a), (b) or (c) below, as selected by the Parties in Schedule 2 (‘‘Elections’’).
- 13.2(a) No Termination Payment. No Force Majeure termination payment shall be made between Parties; provided, however, that the obligation to pay any Unpaid Amounts shall survive the termination of the FM Affected Transaction.
- 13.2(b) Two-way Market Quotation Termination Payment. Both Parties shall go into the market and obtain three (3) mid-market quotations in the Termination Currency from third party dealers for a replacement Transaction for the same amount of Period Traded Allowances (without taking into account the current credit-worthiness of the Requesting Party or any existing Credit Support Document). Each Party will then calculate the average of the quotations it obtained and the amount payable shall be equal to (A) the sum of (I) one-half of the difference between the higher amount so determined (the Party determining the higher amount being “X”) and the lower amount so determined (the Party determining the lower amount being “Y”) and (II) any Unpaid Amounts owing to X less (B) any Unpaid Amounts owing to Y. If the resultant amount is a positive number, Y shall pay it to X; if it is a negative number, X shall pay the absolute value of such amount to Y. If three (3) mid- market quotations cannot be obtained, all quotations will be deemed to be zero.
- 13.2(c) Two-way Loss Termination Payment. Each Party will determine its Loss in respect of the FM Affected Transaction and an amount will be payable in the Termination Currency equal to one half of the difference between the Loss of the Party with the higher Loss (“X”) and the Loss of the Party with the lower Loss (“Y”). If the amount payable is a positive number, Y will pay it to X; if it is a negative number, X will pay the absolute value of such amount to Y.