Template:Isda 11 summ: Difference between revisions
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====Is it covered in the close-out calculation?==== | ====Is it covered in the close-out calculation?==== | ||
No. The “{{{{{1}}}|Expenses}}” referred to in this provision would not be captured by the definition of “{{{{{1}}}|Close-out Amount}}”<ref>Or its 1992 equivalent, | No. The “{{{{{1}}}|Expenses}}” referred to in this provision would not be captured by the definition of “{{{{{1}}}|Close-out Amount}}”<ref>Or its 1992 equivalent, “the amount determined following early termination of a Terminated Transaction”.</ref> or “{{{{{1}}}|Early Termination Amount}}” because, [[Q.E.D.]], they arise only once that amount has been determined and the {{{{{1}}}|Non-Defaulting Party}} is in the process of collecting it. | ||
====Stamp Tax and Section 4(e)==== | ====Stamp Tax and Section 4(e)==== | ||
In the limited circumstance of default, this section modifies the arrangement for who pays {{{{{1}}}|Stamp Tax}} as set out in Section {{{{{1}}}|4(e)}} (which says it is the person whose tax residence precipitates it). | In the limited circumstance of default, this section modifies the arrangement for who pays {{{{{1}}}|Stamp Tax}} as set out in Section {{{{{1}}}|4(e)}} (which says it is the person whose tax residence precipitates it). | ||
Latest revision as of 12:21, 5 January 2024
An indemnity is all very well ...
Bear in mind, also, that your operating theory here is that your counterparty is a {{{{{1}}}|Defaulting Party}} — i.e., for all intents and purposes, broke. So while it’s a fine thing, this indemnity might not be of much practical use.
Is it covered in the close-out calculation?
No. The “{{{{{1}}}|Expenses}}” referred to in this provision would not be captured by the definition of “{{{{{1}}}|Close-out Amount}}”[1] or “{{{{{1}}}|Early Termination Amount}}” because, Q.E.D., they arise only once that amount has been determined and the {{{{{1}}}|Non-Defaulting Party}} is in the process of collecting it.
Stamp Tax and Section 4(e)
In the limited circumstance of default, this section modifies the arrangement for who pays {{{{{1}}}|Stamp Tax}} as set out in Section {{{{{1}}}|4(e)}} (which says it is the person whose tax residence precipitates it).
- ↑ Or its 1992 equivalent, “the amount determined following early termination of a Terminated Transaction”.