Template:Nutshell 2002 ISDA 5(e): Difference between revisions

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{{isdaprov|5(e)}} '''Head office refuses to perform branch’s obligations'''. If:
{{isdaprov|5(e)}} '''Head office unable to perform branch’s obligations'''. If:
:(i) an {{isdaprov|Illegality}} or a [[Force Majeure Event - ISDA Provision|Force Majeure]] occurs to an {{isdaprov|Affected Party}} but its head office is not affected; AND  
:(i) an {{isdaprov|Illegality}} or a [[Force Majeure Event - ISDA Provision|Force Majeure]] occurs a branch of an {{isdaprov|Affected Party}}''other than its head office''; AND  
:(ii) it has made the {{isdaprov|Offices}} representation from Section {{isdaprov|10(a)}}<ref>When — and ''why'' — would it not apply? Search me.</ref>; AND
:(ii) it has representated that its head office will be liable for all branch obligations (per Section {{isdaprov|10(a)}})<ref>When — and ''why'' — would it not make that rep? Search me.</ref>; AND
:(iii) the {{isdaprov|Non-Affected Party}} requires the {{isdaprov|Affected Party}} to perform through its head office; AND
:(iii) the {{isdaprov|Non-Affected Party}} asks the {{isdaprov|Affected Party}} to perform through its head office; AND
:(iv) the {{isdaprov|Affected Party}}’s head office does not perform because of something which would, were it the Office through which the {{isdaprov|Affected Party}} makes payments and deliveries under the relevant {{isdaprov|Transaction}}, be an {{isdaprov|Illegality}} or a [[Force Majeure Event - ISDA Provision|Force Majeure]], and that failure would otherwise be an [[Failure to Pay or Deliver - ISDA Provision|Failure to Pay]] or {{isdaprov|Credit Support Default}} for the {{isdaprov|Affected Party}}, then, as long as the Illegality/FM continues with respect to both the specified Office for the Transaction and the Affected Party’s head office, its failure will not constitute an [[Failure to Pay or Deliver - ISDA Provision|Failure to Pay]] or {{isdaprov|Credit Support Default}}. <br>
:(iv) the {{isdaprov|Affected Party}} cannot perform because its head office would also be subject to an {{isdaprov|Illegality}} or a [[Force Majeure Event - ISDA Provision|Force Majeure]] if tried to do so, then as long as that situation prevails, that failure will not count as a [[Failure to Pay or Deliver - ISDA Provision|Failure to Pay]] or {{isdaprov|Credit Support Default}} for the {{isdaprov|Affected Party}}.<br>

Revision as of 18:17, 20 March 2018

5(e) Head office unable to perform branch’s obligations. If:

(i) an Illegality or a Force Majeure occurs a branch of an Affected Partyother than its head office; AND
(ii) it has representated that its head office will be liable for all branch obligations (per Section 10(a))[1]; AND
(iii) the Non-Affected Party asks the Affected Party to perform through its head office; AND
(iv) the Affected Party cannot perform because its head office would also be subject to an Illegality or a Force Majeure if tried to do so, then as long as that situation prevails, that failure will not count as a Failure to Pay or Credit Support Default for the Affected Party.
  1. ↑ When — and why — would it not make that rep? Search me.
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