Template:Nutshell 2002 ISDA Close-out Amount: Difference between revisions
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“'''{{isdaprov|Close-out Amount}}'''” means the losses the {{isdaprov|Determining Party}} would incur (positive) or gains it would realise (negative) in replacing the material terms and the option rights of the parties under a {{isdaprov|Terminated Transaction}}, determined as of the {{isdaprov|Early Termination Date}} in {{tag|good faith}} and in a {{tag|commercially reasonable}} manner. The {{isdaprov|Determining Party}} may determine {{isdaprov|Close-out Amount}}s for groups of {{isdaprov|Terminated Transactions}} as long as all {{isdaprov|Terminated Transactions}} are accounted for. <br> | “'''{{isdaprov|Close-out Amount}}'''” means the losses the {{isdaprov|Determining Party}} would incur (positive) or gains it would realise (negative) in replacing the material terms and the option rights of the parties under a {{isdaprov|Terminated Transaction}}, determined as of the {{isdaprov|Early Termination Date}} in {{tag|good faith}} and in a {{tag|commercially reasonable}} manner. The {{isdaprov|Determining Party}} may determine {{isdaprov|Close-out Amount}}s for groups of {{isdaprov|Terminated Transactions}} as long as all {{isdaprov|Terminated Transactions}} are accounted for. <br> | ||
{{isdaprov|Unpaid Amounts}} and {{isdaprov|Expenses}} in respect of {{isdaprov|Terminated Transaction}}s are '''excluded''' from the {{isdaprov|Close-out Amount}} calculation. <br | {{isdaprov|Unpaid Amounts}} and {{isdaprov|Expenses}} in respect of {{isdaprov|Terminated Transaction}}s are '''excluded''' from the {{isdaprov|Close-out Amount}} calculation. <br> | ||
The {{isdaprov|Determining Party}} may consider any of the following (unless it thinks they | The {{isdaprov|Determining Party}} may consider any of the following (unless it thinks they aren’t available or would produce an unconscionable result): <br> | ||
:(i) quotations for replacement transactions that factor in the {{isdaprov|Determining Party}} | :(i) quotations for replacement transactions that factor in the {{isdaprov|Determining Party}}’s creditworthiness and the ISDA terms between the {{isdaprov|Determining Party}} and the quoting party; <br> | ||
:(ii) third party market data; or <br> | :(ii) third party market data; or <br> | ||
:(iii) internal quotes or market data if used by the {{isdaprov|Determining Party}} in the regular course to value similar transactions. <br> | :(iii) internal quotes or market data if used by the {{isdaprov|Determining Party}} in the regular course to value similar transactions. <br> | ||
Revision as of 09:16, 29 July 2019
“Close-out Amount” means the losses the Determining Party would incur (positive) or gains it would realise (negative) in replacing the material terms and the option rights of the parties under a Terminated Transaction, determined as of the Early Termination Date in good faith and in a commercially reasonable manner. The Determining Party may determine Close-out Amounts for groups of Terminated Transactions as long as all Terminated Transactions are accounted for.
Unpaid Amounts and Expenses in respect of Terminated Transactions are excluded from the Close-out Amount calculation.
The Determining Party may consider any of the following (unless it thinks they aren’t available or would produce an unconscionable result):
- (i) quotations for replacement transactions that factor in the Determining Party’s creditworthiness and the ISDA terms between the Determining Party and the quoting party;
- (ii) third party market data; or
- (iii) internal quotes or market data if used by the Determining Party in the regular course to value similar transactions.