2014 ISDA Credit Derivatives Definitions: Difference between revisions
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==Article 8 Terms Relating To Physical Settlement== | ==Article 8 Terms Relating To Physical Settlement== | ||
'''Section {{cddprov|8.1}} Physical Settlement'''. If “'''{{cddprov|Physical Settlement}}'''” is specified as the {{cddprov|Settlement Method}} in the related {{cddprov|Confirmation}} (or if Physical Settlement is applicable as the {{cddprov|Fallback Settlement Method}} in accordance with Section {{cddprov|6.1}} ({{cddprov|Auction Settlement}})), {{cddprov|Buyer}} shall, subject to Sections {{cddprov|5.1}} (Settlement), {{cddprov|10.1}} (Settlement Suspension) and {{cddprov|11.2}}(c)(ii) (Additional Representations and Agreements for Physical Settlement), on or prior to the {{cddprov|Physical Settlement Date}}, Deliver to {{cddprov|Seller}} the {{cddprov|Deliverable Obligation}}s specified in the {{cddprov|Notice of Physical Settlement}} or any {{cddprov|NOPS Amendment Notice}}, as applicable, and {{cddprov|Seller}} shall pay to {{cddprov|Buyer}} the {{cddprov|Physical Settlement Amount}} that corresponds to the {{cddprov|Deliverable Obligation}}s that {{cddprov|Buyer}} has Delivered. If {{cddprov|Buyer}} Delivers {{cddprov|Deliverable Obligation}}s in an amount greater than the {{cddprov|Deliverable Obligation}}s specified in the {{cddprov|Notice of Physical Settlement}} or any {{cddprov|NOPS Amendment Notice}}, as applicable, {{cddprov|Seller}} shall not be required to pay more than the {{cddprov|Physical Settlement Amount}} that corresponds to the {{cddprov|Deliverable Obligation}}s specified in the {{cddprov|Notice of Physical Settlement}} or any {{cddprov|NOPS Amendment Notice}}, as applicable. For purposes of the foregoing, Delivery by {{cddprov|Buyer}} and payment by {{cddprov|Seller}} shall be made in accordance with market practice applicable to the {{cddprov|Deliverable Obligation}} on the {{cddprov|Delivery Date}}.<br> | '''Section {{cddprov|8.1}} Physical Settlement'''. If “'''{{cddprov|Physical Settlement}}'''” is specified as the {{cddprov|Settlement Method}} in the related {{cddprov|Confirmation}} (or if Physical Settlement is applicable as the {{cddprov|Fallback Settlement Method}} in accordance with Section {{cddprov|6.1}} ({{cddprov|Auction Settlement}})), {{cddprov|Buyer}} shall, subject to Sections {{cddprov|5.1}} (Settlement), {{cddprov|10.1}} (Settlement Suspension) and {{cddprov|11.2}}(c)(ii) (Additional Representations and Agreements for Physical Settlement), on or prior to the {{cddprov|Physical Settlement Date}}, Deliver to {{cddprov|Seller}} the {{cddprov|Deliverable Obligation}}s specified in the {{cddprov|Notice of Physical Settlement}} or any {{cddprov|NOPS Amendment Notice}}, as applicable, and {{cddprov|Seller}} shall pay to {{cddprov|Buyer}} the {{cddprov|Physical Settlement Amount}} that corresponds to the {{cddprov|Deliverable Obligation}}s that {{cddprov|Buyer}} has Delivered. If {{cddprov|Buyer}} Delivers {{cddprov|Deliverable Obligation}}s in an amount greater than the {{cddprov|Deliverable Obligation}}s specified in the {{cddprov|Notice of Physical Settlement}} or any {{cddprov|NOPS Amendment Notice}}, as applicable, {{cddprov|Seller}} shall not be required to pay more than the {{cddprov|Physical Settlement Amount}} that corresponds to the {{cddprov|Deliverable Obligation}}s specified in the {{cddprov|Notice of Physical Settlement}} or any {{cddprov|NOPS Amendment Notice}}, as applicable. For purposes of the foregoing, Delivery by {{cddprov|Buyer}} and payment by {{cddprov|Seller}} shall be made in accordance with market practice applicable to the {{cddprov|Deliverable Obligation}} on the {{cddprov|Delivery Date}}.<br> |