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*Party A has therefore posted £1mm in collateral to Party B. | *Party A has therefore posted £1mm in collateral to Party B. | ||
An Equity Notional Reset would operate as follows: | An {{eqderivprov|Equity Notional Reset}} would operate as follows: | ||
*The {{eqderivprov|Equity Notional Amount}} would be reset at £9mm (the calculation being original {{eqderivprov|Equity Notional Amount}} + {{eqderivprov|Equity Amount}}, which in this case would be £10mm + £-1mm = £9mm) | *The {{eqderivprov|Equity Notional Amount}} would be reset at £9mm (the calculation being original {{eqderivprov|Equity Notional Amount}} + {{eqderivprov|Equity Amount}}, which in this case would be £10mm + £-1mm = £9mm) | ||
*In consideration for this reduction in the Equity Notional Amount, Party A would become liable to pay an exchange amount of £1mm. | *In consideration for this reduction in the Equity Notional Amount, Party A would become liable to pay an exchange amount of £1mm. |