Template:Nutshell 2002 ISDA 6(e)(ii): Difference between revisions
Jump to navigation
Jump to search
Amwelladmin (talk | contribs) Created page with ":{{isdaprov|6(e)(ii)}} '''{{isdaprov|Termination Events}}'''. If the {{isdaprov|Early Termination Date}} results from a {{isdaprov|Termination Event}}:― ::(1) '''One {{isd..." |
Amwelladmin (talk | contribs) No edit summary |
||
| Line 1: | Line 1: | ||
:{{isdaprov|6(e)(ii)}} '''{{isdaprov|Termination Events}}'''. If the {{isdaprov|Early Termination Date}} results from a {{isdaprov|Termination Event}}:― | :{{isdaprov|6(e)(ii)}} '''{{isdaprov|Termination Events}}'''. If the {{isdaprov|Early Termination Date}} results from a {{isdaprov|Termination Event}}:― | ||
::(1) '''One {{isdaprov|Affected Party}}'''. | ::(1) '''One {{isdaprov|Affected Party}}'''. If there is '''one''' {{isdaprov|Affected Party}}, the {{isdaprov|Early Termination Amount}} will be determined the same was as for {{isdaprov|Events of Default}} under Section {{isdaprov|6(e)(i)}} [[mutatis mutandis]]. | ||
::(2) '''Two {{isdaprov|Affected Parties}}'''. | ::(2) '''Two {{isdaprov|Affected Parties}}'''. If there are '''two''' {{isdaprov|Affected Parties}}, each party will determine the {{isdaprov|Termination Currency Equivalent}} of the total the {{isdaprov|Close-out Amounts}} for each {{isdaprov|Terminated Transaction}} and the {{isdaprov|Early Termination Amount}} will be: <br> | ||
:::(A) the sum of <br> | :::(A) the sum of <br> | ||
::::(I) half of the difference between the higher amount (determined by party “'''X'''”) and the lower amount (determined by party “'''Y'''”) and <br> | ::::(I) half of the difference between the higher amount (determined by party “'''X'''”) and the lower amount (determined by party “'''Y'''”) and <br> | ||
::::(II) the {{isdaprov|Termination Currency Equivalent}} of the {{isdaprov|Unpaid Amounts}} owing to X | ::::(II) the {{isdaprov|Termination Currency Equivalent}} of the {{isdaprov|Unpaid Amounts}} owing to X '''minus''' <br> | ||
:::(B) the {{isdaprov|Termination Currency Equivalent}} of the {{isdaprov|Unpaid Amounts}} owing to Y. | :::(B) the {{isdaprov|Termination Currency Equivalent}} of the {{isdaprov|Unpaid Amounts}} owing to Y. | ||
::If the {{isdaprov|Early Termination Amount}} is a positive number, Y will pay it to X; if negative , X will pay its absolute value to Y. | ::If the {{isdaprov|Early Termination Amount}} is a positive number, Y will pay it to X; if negative , X will pay its absolute value to Y. | ||
::(3) '''{{isdaprov|Mid-Market Events}}'''. In the | ::(3) '''{{isdaprov|Mid-Market Events}}'''. In either case where the Termination Event is an {{isdaprov|Illegality}} or a {{isdaprov|Force Majeure Event}}, when determining a {{isdaprov|Close-out Amount}} the {{isdaprov|Determining Party}} will use [[mid-market quotation|mid-market quotations]] or values that do not take into account the {{isdaprov|Determining Party}}’s own creditworthiness. <br> | ||
Revision as of 08:51, 18 April 2018
- 6(e)(ii) Termination Events. If the Early Termination Date results from a Termination Event:―
- (1) One Affected Party. If there is one Affected Party, the Early Termination Amount will be determined the same was as for Events of Default under Section 6(e)(i) mutatis mutandis.
- (2) Two Affected Parties. If there are two Affected Parties, each party will determine the Termination Currency Equivalent of the total the Close-out Amounts for each Terminated Transaction and the Early Termination Amount will be:
- (A) the sum of
- (I) half of the difference between the higher amount (determined by party “X”) and the lower amount (determined by party “Y”) and
- (II) the Termination Currency Equivalent of the Unpaid Amounts owing to X minus
- (I) half of the difference between the higher amount (determined by party “X”) and the lower amount (determined by party “Y”) and
- (B) the Termination Currency Equivalent of the Unpaid Amounts owing to Y.
- (A) the sum of
- If the Early Termination Amount is a positive number, Y will pay it to X; if negative , X will pay its absolute value to Y.
- (3) Mid-Market Events. In either case where the Termination Event is an Illegality or a Force Majeure Event, when determining a Close-out Amount the Determining Party will use mid-market quotations or values that do not take into account the Determining Party’s own creditworthiness.