Template:M summ 2002 ISDA 6(b): Difference between revisions
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There is a difference between {{isdaprov|Early Termination Date}}s brought about by {{isdaprov|Termination Event}}s that affect one, some, or just a group of {{isdaprov|Transaction}}s — these might be affected by, say, a {{isdaprov|Tax Event}} or a local {{isdaprov|Illegality}}, but in any weather they are not much about the [[solvency]], [[creditworthiness]] or mendacity of your counterparty (and might have nothing to do with your counterparty at all; and those {{isdaprov|Termination Event}}s which by their nature affect — that is, “[[Affected Transaction - 1992 ISDA Provision|Affect]]” — ''all {{isdaprov|Transactions}}''. These generally are the bespoke ones your credit department insisted on, they ''will'' have something to do with the naughtiness of lack of fibre of one or other of the counterparty, and these function for most respects a lot more like {{isdaprov|Events of Default}}. | [[6(b) - ISDA Provision|There]] is a difference between {{isdaprov|Early Termination Date}}s brought about by {{isdaprov|Termination Event}}s that affect one, some, or just a group of {{isdaprov|Transaction}}s — these might be affected by, say, a {{isdaprov|Tax Event}} or a local {{isdaprov|Illegality}}, but in any weather they are not much about the [[solvency]], [[creditworthiness]] or mendacity of your counterparty (and might have nothing to do with your counterparty at all; and those {{isdaprov|Termination Event}}s which by their nature affect — that is, “[[Affected Transaction - 1992 ISDA Provision|Affect]]” — ''all {{isdaprov|Transactions}}''. These generally are the bespoke ones your credit department insisted on, they ''will'' have something to do with the naughtiness of lack of fibre of one or other of the counterparty, and these function for most respects a lot more like {{isdaprov|Events of Default}}. | ||
Thus, in the drafting of ISDA Schedules, CSAs and so on, you will often find laboured reference to {{isdaprov|Events of Default}} [[and/or]] {{isdaprov|Termination Events}} which lead to {{isdaprov|Early Termination Date}}s ''with respect to all outstanding {{isdaprov|Transaction}}s'' as some kind of special, hyper-exciting, class of {{isdaprov|Termination Event}}. | Thus, in the drafting of ISDA Schedules, CSAs and so on, you will often find laboured reference to {{isdaprov|Events of Default}} [[and/or]] {{isdaprov|Termination Events}} which lead to {{isdaprov|Early Termination Date}}s ''with respect to all outstanding {{isdaprov|Transaction}}s'' as some kind of special, hyper-exciting, class of {{isdaprov|Termination Event}}. | ||
Revision as of 14:03, 22 July 2021
There is a difference between Early Termination Dates brought about by Termination Events that affect one, some, or just a group of Transactions — these might be affected by, say, a Tax Event or a local Illegality, but in any weather they are not much about the solvency, creditworthiness or mendacity of your counterparty (and might have nothing to do with your counterparty at all; and those Termination Events which by their nature affect — that is, “Affect” — all Transactions. These generally are the bespoke ones your credit department insisted on, they will have something to do with the naughtiness of lack of fibre of one or other of the counterparty, and these function for most respects a lot more like Events of Default.
Thus, in the drafting of ISDA Schedules, CSAs and so on, you will often find laboured reference to Events of Default and/or Termination Events which lead to Early Termination Dates with respect to all outstanding Transactions as some kind of special, hyper-exciting, class of Termination Event.