PPF Event - ISDA Provision

In gory detail

1992 ISDA PPF Event: It shall be an Additional Termination Event (and Party A shall be the Affected Party and all Transactions shall be Affected Transactions) when: (a) the Board of the Pension Protection Fund (“PPF”) approves under section 144 of the Pensions Act 2004 (the “Act”) a valuation under section 143 of the Act which verifies that Party A’s protected liabilities (within the meaning of section 131 of the Act) exceed its assets; (b) the PPF determines under section 152(2) that it must accept responsibility for the Scheme; or (c) the PPF approves under section 158(3) of the Act an actuarial valuation which verifies that Party A’s protected liabilities exceed its assets; provided that in each case there shall be no Additional Termination Event if the PPF prior to termination by Party B has executed and issued a deed to Party B that it will not, following the issue of a transfer notice pursuant to section 160 of the Act, use its powers under section 161 of the Act (or any regulations made thereunder) to disapply or amend any terms or conditions of this Agreement or terminate this Agreement (unless such disapplication, or termination is permitted under the express terms of the Agreement). (view template)

2002 ISDA PPF Event: It shall be an Additional Termination Event (and Party A shall be the Affected Party and all Transactions shall be Affected Transactions) when: (a) the Board of the Pension Protection Fund (“PPF”) approves under section 144 of the Pensions Act 2004 (the “Act”) a valuation under section 143 of the Act which verifies that Party A’s protected liabilities (within the meaning of section 131 of the Act) exceed its assets; (b) the PPF determines under section 152(2) that it must accept responsibility for the Scheme; or (c) the PPF approves under section 158(3) of the Act an actuarial valuation which verifies that Party A’s protected liabilities exceed its assets; provided that in each case there shall be no Additional Termination Event if the PPF prior to termination by Party B has executed and issued a deed to Party B that it will not, following the issue of a transfer notice pursuant to section 160 of the Act, use its powers under section 161 of the Act (or any regulations made thereunder) to disapply or amend any terms or conditions of this Agreement or terminate this Agreement (unless such disapplication, or termination is permitted under the express terms of the Agreement). (view template)

Commentary

Note the two are the same. Actually, one is just a redirect to the other. The PPF issued the following paper by way of explanation.