Section 2(a)(iii) - ISDA Provision: Difference between revisions

Section 2(a)(iii) - ISDA Provision (view source)

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 ==Commentary==
 In a {{nutshell}}, section {{isdaprov|2(a)(iii)}} does the following:
-*Allows the {{isdaprov|Defaulting Party}} to notify of an {{isdaprov|Event of Default}} or {{isdaprov|Potential Event of Default}}.
-*That in turn starts the clock running on a period (to be agreed by the parties but likely to be no more than a month) in which the {{isdaprov|Non-defaulting Party}} has to decide what to do. During that period the {{isdaprov|Non-Defaulting Party}} retains its traditional right under {{isdaprov|2(a)(iii)}} to suspend payments under the {{isdama}}.
-*upon expiry of that period the {{isdaprov|Event of Default}} no longer qualifies as a [[condition precedent]] to payment under the Section {{isdaprov|2(a)(iii)}}, so if the {{isdaprov|Non-Defaulting Party}} has not exercised its right to terminate, it must resume performance of the transaction.
+{{nuts|isda|2(a)(iii)}}}
 {{isia}}