Template:Nutshell 2002 ISDA 6(e)(ii): Difference between revisions
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:{{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}}'''. If there is '''one''' {{isdaprov|Affected Party}}, the {{isdaprov|Early Termination Amount}} will be determined as for {{isdaprov|Events of Default}} under Section {{isdaprov|6(e)(i)}} [[mutatis mutandis]]. | ::(1) '''One {{isdaprov|Affected Party}}'''. If there is '''one''' {{isdaprov|Affected Party}}, the {{isdaprov|Early Termination Amount}} will be determined as for {{isdaprov|Events of Default}} under Section {{isdaprov|6(e)(i)}} [[mutatis mutandis]]. | ||
::(2) '''Two {{isdaprov|Affected Parties}}'''. If there are '''two''' {{isdaprov|Affected Parties}}, each party will determine the {{isdaprov|Termination Currency Equivalent}} of | ::(2) '''Two {{isdaprov|Affected Parties}}'''. If there are '''two''' {{isdaprov|Affected Parties}}, each party will determine the {{isdaprov|Termination Currency Equivalent}} of the {{isdaprov|Close-out Amounts}} for all {{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> | ||
Revision as of 09:19, 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 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 Close-out Amounts for all 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.