Template:Isda Potential Event of Default summ: Difference between revisions
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A {{{{{1}}}|Potential Event of Default}} is a {{{{{1}}}|Failure to Pay or Deliver}}, {{{{{1}}}|Breach of Agreement}} (or other {{{{{1}}}|Event of Default}}) with an unexpired [[grace period]], or where the [[grace period]] has expired but the {{{{{1}}}|Non-defaulting Party}} hasn’t (yet) given a notice of default actually [[Accelerate|accelerating]] the default into an actual {{{{{1}}}|Event of Default}}. | A {{{{{1}}}|Potential Event of Default}} is a {{{{{1}}}|Failure to Pay or Deliver}}, {{{{{1}}}|Breach of Agreement}} (or other {{{{{1}}}|Event of Default}}) with an unexpired [[grace period]], or where the [[grace period]] has expired but the {{{{{1}}}|Non-defaulting Party}} hasn’t (yet) given a notice of default actually [[Accelerate|accelerating]] the default into an actual {{{{{1}}}|Event of Default}}. | ||
That means, 2(a)(iii) defenders, that ''any'' formal breach of the {{isdama}}, if notified by the {{{{{1}}}|Non-defaulting Party}}, renders the Section {{{{{1}}}|2(a)(iii)}} conditions precedent unfulfilled, and means you can suspend performance of your obligations under all outstanding {{{{{1}}}|Transaction}}s. | That means, 2(a)(iii) defenders, that ''any'' formal breach of the {{isdama}}, if notified by the {{{{{1}}}|Non-defaulting Party}}, renders the Section {{{{{1}}}|2(a)(iii)}} [[conditions precedent]] unfulfilled, and means you can suspend performance of your obligations under all outstanding {{{{{1}}}|Transaction}}s. I don’t make the rules, folks. | ||
Revision as of 12:29, 30 April 2024
A {{{{{1}}}|Potential Event of Default}} is a {{{{{1}}}|Failure to Pay or Deliver}}, {{{{{1}}}|Breach of Agreement}} (or other {{{{{1}}}|Event of Default}}) with an unexpired grace period, or where the grace period has expired but the {{{{{1}}}|Non-defaulting Party}} hasn’t (yet) given a notice of default actually accelerating the default into an actual {{{{{1}}}|Event of Default}}.
That means, 2(a)(iii) defenders, that any formal breach of the ISDA Master Agreement, if notified by the {{{{{1}}}|Non-defaulting Party}}, renders the Section {{{{{1}}}|2(a)(iii)}} conditions precedent unfulfilled, and means you can suspend performance of your obligations under all outstanding {{{{{1}}}|Transaction}}s. I don’t make the rules, folks.