83,240
edits
Amwelladmin (talk | contribs) (Created page with "===Why “Agent” here, and “Party” there?=== '''{{eqderivprov|Calculation Agent}}'''; There is a sense that an “agent” is one who acts on the behalf of others — bo...") |
Amwelladmin (talk | contribs) No edit summary |
||
Line 6: | Line 6: | ||
'''{{eqderivprov|Hedging Party}} and {{eqderivprov|Determining Party}}''': The Determining Party and Hedging Party are, by contrast, parties (not necessarily counterparties to the actual {{eqderivprov|Transaction}}, though usually) overtly acting with regard to their own position, being the hedge transaction, not the equity swap itself — though in every case, required to do so in [[good faith]] and using [[commercially reasonable]] procedures. | '''{{eqderivprov|Hedging Party}} and {{eqderivprov|Determining Party}}''': The Determining Party and Hedging Party are, by contrast, parties (not necessarily counterparties to the actual {{eqderivprov|Transaction}}, though usually) overtly acting with regard to their own position, being the hedge transaction, not the equity swap itself — though in every case, required to do so in [[good faith]] and using [[commercially reasonable]] procedures. | ||
=== | ===“Good faith and commercial reasonableness” standard=== | ||
At first blush it looks like only the Calculation Agent is subject to the “{{gfcrm}}” standard, but this is really just the way {{icds}} decided to express themselves. Whereas the performance standard is baked into the definition of Calculation Agent in Section 1.40, for determining Party it is set out separately in Section {{eqderivprov|12.8(b)}}: “Any {{eqderivprov|Cancellation Amount}} will be determined by the {{eqderivprov|Determining Party}} (or its [[agent]]), which will act in [[good faith]] and use [[commercially reasonable]] procedures in order to produce a [[commercially reasonable]] result.” | At first blush it looks like only the {{eqderivprov|Calculation Agent}} is subject to the “{{gfcrm}}” standard, but this is really just the way {{icds}} decided to express themselves. Whereas the performance standard is baked into the definition of Calculation Agent in Section 1.40, for determining Party it is set out separately in Section {{eqderivprov|12.8(b)}}: “Any {{eqderivprov|Cancellation Amount}} will be determined by the {{eqderivprov|Determining Party}} (or its [[agent]]), which will act in [[good faith]] and use [[commercially reasonable]] procedures in order to produce a [[commercially reasonable]] result.” |