Template:M summ 2002 ISDA 5(a)(ii): Difference between revisions
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[[Double negative]] heaven in 5(a)(ii)(1): '''not''' complying with an obligation that is '''not''' (''[[inter alia]]'') a payment obligation if '''not''' remedied within a month. | [[Double negative]] heaven in {{isdaprov|5(a)(ii)}}(1): '''not''' complying with an obligation that is '''not''' (''[[inter alia]]'') a payment obligation if '''not''' remedied within a month. | ||
A failure to perform any agreement, if not cured within 30 days, is an {{isdaprov|Event of Default}}, except for | A failure to perform any agreement, if not cured within 30 days, is an {{isdaprov|Event of Default}}, except for | ||
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''[[ISDA]]{{tm}}. Never knowingly outfussed.{{tm}}'' | ''[[ISDA]]{{tm}}. Never knowingly outfussed.{{tm}}'' | ||
===It is an {{isdaprov|Event of Default}} not to supply {{isdaprov|documents for delivery}}=== | ===It is an {{isdaprov|Event of Default}} not to supply {{isdaprov|documents for delivery}}=== | ||
A failure to {{isdaprov|Furnish Specified Information}} — ie those {{isdaprov|documents for delivery}} specified in {{isdaprov|Part 3}} of the {{isdama}}, adverted to in Section {{isdaprov|4(a)(ii)}} ''will'' therefore be an {{isdaprov|Event of Default}}, although you have to navigate a needlessly tortured string of clause cross references and [[double negative|double negatives]] to settle upon this conclusion. | A failure to {{isdaprov|Furnish Specified Information}} — ie those {{isdaprov|documents for delivery}} specified in {{isdaprov|Part 3}} of the {{isdama}}, adverted to in Section {{isdaprov|4(a)(ii)}} ''will'' therefore be an {{isdaprov|Event of Default}}, although you have to navigate a needlessly tortured string of clause cross references and [[double negative|double negatives]] to settle upon this conclusion. | ||
Revision as of 09:01, 25 February 2020
Double negative heaven in 5(a)(ii)(1): not complying with an obligation that is not (inter alia) a payment obligation if not remedied within a month.
A failure to perform any agreement, if not cured within 30 days, is an Event of Default, except for
- (i) those failures who have their own special Event of Default (ie Failure to Pay or Deliver under Section 5(a)(i)) or
- (ii) those that relate to tax, and which mean the party not complying will just get clipped for tax it rather would not.
Failure to Pay or Deliver carve-out
Why is Section 5(a)(i) specifically carved out? No good reason other than general ISDA neurosis/delight in over-communicating. Yes, it has its own separate Event of Default, with a much tighter timeline, so in practice one would never realistically trigger a failure to pay as a 5(a)(ii) event, but it is still a bit fussy carving it out.
ISDA™. Never knowingly outfussed.™
It is an Event of Default not to supply documents for delivery
A failure to Furnish Specified Information — ie those documents for delivery specified in Part 3 of the ISDA Master Agreement, adverted to in Section 4(a)(ii) will therefore be an Event of Default, although you have to navigate a needlessly tortured string of clause cross references and double negatives to settle upon this conclusion.