Template:Isda Specified Entity summ: Difference between revisions

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-{{{{{1}}}|Specified Entity}} is so (~ cough ~) important that it is literally the first thing you see when you regard an ISDA {{{{{1}}}|Schedule}}.
+A {{{{{1}}}|Specified Entity}} is any affiliate of a counterparty to an {{isdama}} which is designated in the relevant Schedule.
-Painstakingly set out, separately for {{{{{1}}}|Events of Default}} (namely {{{{{1}}}|DUST}} (Section {{{{{1}}}|5(a)(v)}}), {{{{{1}}}|Cross Default}} (Section {{{{{1}}}|5(a)(vi)}}) and {{{{{1}}}|Bankruptcy}} (Section {{{{{1}}}|5(a)(vii)}}) and the one {{{{{1}}}|Termination Event}} (Credit Event Upon Merger (Section {{{{{1}}}|5(b)(v)}}  — as if you would want different Affiliates to trigger this event depending on precisely ''how'' they cork-screwed into the side of a hill), and jointly for the “{{{{{1}}}|Absence of Litigation}}” representation in Section {{{{{1}}}|3(c)}} of the {{2002ma}}.
+It is relevant to the definition of {{{{{1}}}|Cross Default}} and {{{{{1}}}|Default under Specified Transaction}} in that it widens the effect of those provisions to include defaults by the parties specified.
-A {{{{{1}}}|Specified Entity}} is any affiliate (or, in theory at any rate, even a non-affiliate, if your risk officer is a total cretin) of a counterparty to an {{isdama}} which is designated in the relevant Schedule.
+It is so (~ cough ~) important that it is, literally, the first thing you see when you regard an ISDA {{{{{1}}}|Schedule}}.
-It is relevant to the definition of {{{{{1}}}|Cross Default}} and {{{{{1}}}|Default under Specified Transaction}} in that it widens the effect of those provisions to include defaults by the parties specified.
+The same concept in both versions of the {{isdama}} only with different clause numberings. {{{{{1}}}|Specified Entity}} is relevant to:
+*{{{{{1}}}|DUST}}
+*{{{{{1}}}|Cross Default}}
+*{{{{{1}}}|Bankruptcy}}
+*{{{{{1}}}|Credit Event Upon Merger}}
+And of course the {{{{{1}}}|Absence of Litigation}} representation. Let’s not forget that.
+Each party designates its Specified Entities for each of these events in Part 1(a) of the Schedule, which gives the Schedule its familiar layout:
+{{subtableflex|47|
+{{ISDA Master Agreement 2002 Schedule Part 1(a)}} }}
+Now, why would anyone want different Affiliates to trigger this a {{{{{1}}}|Event of Default}} depending precisely upon ''how'' they cork-screwed into the side of a hill? Well, there is one reason where it might make a big difference when it comes to {{{{{1}}}|Bankruptcy}}, and we will pick that up in the premium section. But generally — and even in that case, really — in our time of variation margin it really ought not to be the thing that is bringing down your {{isdama}}.
+Note it also pops up as relevant in the “{{{{{1}}}|Absence of Litigation}}” representation in Section {{{{{1}}}|3(c)}} of the {{2002ma}}.