Terminated Transactions - ISDA Provision: Difference between revisions
Jump to navigation
Jump to search
Amwelladmin (talk | contribs) No edit summary |
Amwelladmin (talk | contribs) No edit summary |
||
| Line 1: | Line 1: | ||
{{ | {{manual|MI|2002|Terminated Transactions|Section|Terminated Transactions|medium}} This might help answer the vexed question of why there that curious “[[Right to Terminate Following Event of Default - ISDA Provision|by not more than 20 days’ notice]]” period for a close-out notice under Section {{isdaprov|6(a)}}. You may have a {{isdaprov|Transaction}} that is due to roll off and you want it to settle before you close out the portfolio. It is not a very compelling reason, in fairness. But it at least suggests someone on the [[ISDA]] drafting commitee was thinking about it, even if not especially insightfully. | ||
===Proposed ISDA amendments as a result of adjustment to {{isdaprov|Section 2(a)(iii)}}=== | ===Proposed ISDA amendments as a result of adjustment to {{isdaprov|Section 2(a)(iii)}}=== | ||
The {{isdaprov|2(a)(iii)}} amendment seems to have lost its heat but there was a time when [[ISDA]] was proposing the following: | The {{isdaprov|2(a)(iii)}} amendment seems to have lost its heat but there was a time when [[ISDA]] was proposing the following: | ||
:{{ISDA Master Agreement 2002 Terminated Transactions Definition Protocol}} | :{{ISDA Master Agreement 2002 Terminated Transactions Definition Protocol}} | ||
Revision as of 10:46, 17 March 2020
Content and comparisons
Summary
General discussion
Proposed ISDA amendments as a result of adjustment to Section 2(a)(iii)
The 2(a)(iii) amendment juggernaut seems to have lost its heat but there was a time when ISDA was proposing the following:
- "Terminated Transactions” means, with respect to any Early Termination Date, (a) if resulting from an Illegality or a Force Majeure Event, all Affected Transactions specified in the notice given pursuant to Section 6(b)(iv), (b) if resulting from any other Termination Event, all Affected Transactions and (c) if resulting from an Event of Default, all Transactions, in each case under which a party has or may have any obligation, including, without limitation, an obligation to pay an amount that became payable (or would have become payable but for Section 2(a)(iii) or due but for Section 5(d)) to the other party under Section 2(a)(i) or 2(d)(i)(4) on or prior to that Early Termination Date and which remains unpaid as at such Early Termination Date.
See also
References
This might help answer the vexed question of why there that curious “by not more than 20 days’ notice” period for a close-out notice under Section 6(a). You may have a Transaction that is due to roll off and you want it to settle before you close out the portfolio. It is not a very compelling reason, in fairness. But it at least suggests someone on the ISDA drafting commitee was thinking about it, even if not especially insightfully.
Proposed ISDA amendments as a result of adjustment to Section 2(a)(iii)
The 2(a)(iii) amendment seems to have lost its heat but there was a time when ISDA was proposing the following:
- "Terminated Transactions” means, with respect to any Early Termination Date, (a) if resulting from an Illegality or a Force Majeure Event, all Affected Transactions specified in the notice given pursuant to Section 6(b)(iv), (b) if resulting from any other Termination Event, all Affected Transactions and (c) if resulting from an Event of Default, all Transactions, in each case under which a party has or may have any obligation, including, without limitation, an obligation to pay an amount that became payable (or would have become payable but for Section 2(a)(iii) or due but for Section 5(d)) to the other party under Section 2(a)(i) or 2(d)(i)(4) on or prior to that Early Termination Date and which remains unpaid as at such Early Termination Date.