Failure to Pay, DUST and Cross Default under the ISDA: Difference between revisions

Revision as of 12:42, 10 August 2017

ISDA Anatomy™
incorporating our exclusive ISDA in a Nutshell™

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The Varieties of ISDA Experience
Subject	2002 (wikitext)	1992 (wikitext)	1987 (wikitext)
Preamble	Pre	Pre	Pre
Interpretation	1	1	1
Obligns/Payment	2	2	2
Representations	3	3	3
Agreements	4	4	4
EODs & Term Events	5 Events of Default FTPD • Breach • CSD • Misrep • DUST • Cross Default • Bankruptcy • MWA Termination Events Illegality • Tax Event • TEUM • CEUM • ATE •	5 Events of Default FTPD • Breach • CSD • Misrep • DUST • Cross Default • Bankruptcy • MWA Termination Events Illegality • Tax Event • TEUM • CEUM • ATE •	5 Events of Default FTPD • Breach • CSD • Misrep • DUST • Cross Default • Bankruptcy • MWA Termination Events Illegality • FM • Tax Event • TEUM • CEUM • ATE •
Early Termination	6 Early Termination ET right on EOD • ET right on TE • Effect of Designation • Calculations	6 Early Termination ET right on EOD • ET right on TE • Effect of Designation • Calculations • Set-off	6 Early Termination ET right on EOD • ET right on TE • Effect of Designation • Calculations • Set-off
Transfer	7	7	7
Contractual Currency	8	8	8
Miscellaneous	9	9	9
Offices; Multibranch Parties	10	10	10
Expenses	11	11	11
Notices	12	12	12
Governing Law	13	13	13
Definitions	14	14	14
Schedule	Schedule	Schedule	Schedule
Termination Provisions	Part 1	Part 1	Part 1
Tax Representations	Part 2	Part 2	Part 2
Documents for Delivery	Part 3	Part 3	Part 3
Miscellaneous	Part 4	Part 4	Part 4
Other Provisions	Part 5	Part 5	Part 5

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For those who think it is useful to understand the interaction between Failure to Pay, DUST and Cross Default.

FTP covers payment under delivery defaults directly under the ISDA Master Agreement
DUST covers trades under other master trading agreements (and distinct ISDA Master Agreements — unlikely, but not impossible) between the same two parties
Cross Default covers Specified Indebtedness (unless you’re odd, that means borrowed money) between the counterparty and any third party.

@@ Line 1: / Line 1: @@
-For those who think it is useful to understand the interaction between {{isdaprov|Failure to Pay}}, {{isdaprov|DUST}} and {{isdaprov|Cross Default}}.
+{{anat|isda}}For those who think it is useful to understand the interaction between {{isdaprov|Failure to Pay}}, {{isdaprov|DUST}} and {{isdaprov|Cross Default}}.
 *'''{{isdaprov|FTP}}''' covers payment under delivery defaults directly under the {{isdama}}
 *'''{{isdaprov|DUST}}''' covers trades under other master trading agreements (and distinct {{isdama}}s — unlikely, but not impossible) ''between the same two parties''
 *'''{{isdaprov|Cross Default}}''' covers {{isdaprov|Specified Indebtedness}} (unless you’re odd, that means [[borrowed money]]) between the [[counterparty]] and any [[third party]].