Terminated Transactions - ISDA Provision: Difference between revisions

Revision as of 10:57, 17 March 2020

2002 ISDA Master Agreement
A Jolly Contrarian owner’s manual™

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[[{{{1}}} - 1992 ISDA Provision|This provision in the 1992]]

Index: Click ᐅ to expand: 2002 ISDA 1992 ISDA

Section Terminated Transactions in a Nutshell™

Use at your own risk, campers!

“Terminated Transactions” means, for a Early Termination Date resulting from: (a) an Illegality or a Force Majeure Event, all Affected Transactions specified in the Section 6(b)(iv) notice; (b) any other Termination Event, all Affected Transactions; and (c) an Event of Default, all Transactions : that were in effect immediately before the the Section 6(a) notice designating that Early Termination Date took effect or, if Automatic Early Termination applies, immediately before the Early Termination Date. view template

Full text of Section Terminated Transactions

“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 effect either immediately before the effectiveness of the notice designating that Early Termination Date or, if Automatic Early Termination applies, immediately before that Early Termination Date. view template

Related agreements and comparisons

Click here* for the text of Section Terminated Transactions in the 1992 ISDA* Click to compare* this section in the 1992 ISDA and 2002 ISDA*.

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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.

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-{{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.
+{{manual|MI|2002|Terminated Transactions|Section|Terminated Transactions|medium}}
-===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:
-:{{ISDA Master Agreement 2002 Terminated Transactions Definition Protocol}}