Template:Nutshell 1995 CSA 4(a): Difference between revisions

{{csaprov|4(a)}} '''{{csaprov|Disputed Calculations or Valuations}}'''. If a {{csaprov|Disputing Party}} reasonably disputes the value of a Delivery or Return Amount or the  the {{csaprov|Value}} of any {{csaprov|Eligible Credit Support}}:

:(1) it must notify the other party and the {{csaprov|Valuation Agent}} by close of business on the {{csaprov|Local Business Day}} following receipt of the demand or transfer:

:(2) any undisputed amount must be transferred by close of business on the {{csaprov|Settlement Day}} following the demand date

::(i) For Delivery and Return Amounts, the {{csaprov|Valuation Agent}} will recalculate the {{csaprov|Exposure}} and the {{csaprov|Value}} as of the {{csaprov|Recalculation Date}} by:

:::(A) keeping any part of the calculations that aren't disputed;

:::(B) calculating the disputed portion of the {{csaprov|Exposure}} by seeking four (or if not available, fewer) mid-market quotations from {{csaprov|Reference Market-maker}}s and taking the average; provided that if no quotations are available the {{csaprov|Valuation Agent}}’s original calculations will stand; and

:::(C) using the procedures in Paragraph {{csaprov|11(e)(ii)}} to calculate the {{csaprov|Value}} of the outstanding {{csaprov|Credit Support Balance}};

::(ii) If the {{csaprov|Value}} of any {{csaprov|Equivalent Credit Support}} is disputed the {{csaprov|Valuation Agent}} will recalculate the {{csaprov|Value}} as of the date of transfer pursuant to Paragraph {{csaprov|11(e)(ii)}}. <br />

The {{csaprov|Valuation Agent}} will notify each party (or the other party, if the {{csaprov|Valuation Agent}} is a party) by the {{csaprov|Notification Time}} on the {{csaprov|Local Business Day}} following the {{csaprov|Resolution Time}}. Then the appropriate transfer has to be made.