Events of Default - OSLA Provision: Difference between revisions

Revision as of 14:37, 22 January 2014

Paragraph 12, 1995 Overseas Securities Lender’s Agreement

Template:1995 OSLA 12
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Commentary

Note by contrast to the ISDA Master Agreement the Event of Default is only an Event of Default upon written notice to the other party - in the ISDA Master Agreement it is an Event of Default in itself, and it gives rise to a non-defaulting party's right designate a termination event. A subtle difference but one which calls for a little bit of caution:

For example, a party may have failed to pay or deliver - if you want to simply remind the defaulting party to make the payment without inadvertently triggering a termination, you need to be careful about how you do that so as to not trigger!

Related Provisions

Clause Comparison with GMSLA

The equivalent of this clause in the 2010 GMSLA is:

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@@ Line 1: / Line 1: @@
 {{oslasnap|12}}
 ====Commentary====
+Note by contrast to the {{isdama}} the {{oslaprov|Event of Default}} is only an Event of Default upon written notice to the other party - in the {{isdama}} it is an {{oslaprov|Event of Default}} in itself, and it gives rise to a non-defaulting party's right designate a termination event. A subtle difference but one which calls for a little bit of caution:
+For example, a party may have failed to pay or deliver  - if you want to simply remind the defaulting party to make the payment without inadvertently triggering a termination, you need to be careful about how you do that so as to not trigger!
 ====Related Provisions====