Template:M summ 2002 ISDA 5(a)(iii): Difference between revisions
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Note the charming contingency that {{icds}} allows that a counterparty might default under a credit assurance offered by someone else altogether. | [[5(a)(iii) - ISDA Provision|Note]] the charming contingency that {{icds}} allows that a counterparty might default under a credit assurance offered by someone else altogether. | ||
Before you even put your hand up: no, a [[Credit Support Annex]] between the two counterparties is ''not'' a {{isdaprov|Credit Support Document}}, at least under the English law construct: there it is a “{{isdaprov|Transaction}}” under the {{isdama}}. It is somewhat different with a {{1994csa}}, but even there the User Guide cautions against treating a direct swaap counterparty as a “{{isdaprov|Credit Support Provider}}” — the {{isdaprov|Credit Support Provider}} is meant to be a third party. | Before you even put your hand up: no, a [[Credit Support Annex]] between the two counterparties is ''not'' a {{isdaprov|Credit Support Document}}, at least under the English law construct: there it is a “{{isdaprov|Transaction}}” under the {{isdama}}. It is somewhat different with a {{1994csa}}, but even there the User Guide cautions against treating a direct swaap counterparty as a “{{isdaprov|Credit Support Provider}}” — the {{isdaprov|Credit Support Provider}} is meant to be a third party. |