Template:Isda Termination Event summ: Difference between revisions

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Created page with "{{Difference between Affected Party and Defaulting Party‎‎|{{{1}}}}} ====A trap for Cinderella==== When adding any new {{{{{1}}}|Termination Event}} you must ALWAYS label it a new “{{{{{1}}}|Additional Termination Event}}” under Section {{{{{1}}}|5(b)(vi)}}, and not a separate event under a new Section {{{{{1}}}|5(b)(vii)}} etc. If, instead of being expressed as an “{{{{{1}}}|Additional Termination Event}}”, which is how the ISDA Mechanism is intended to op..."
 
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{{Difference between Affected Party and Defaulting Party‎‎|{{{1}}}}}
====A trap for Cinderella====
When adding any new {{{{{1}}}|Termination Event}} you must ALWAYS label it a new “{{{{{1}}}|Additional Termination Event}}” under Section {{{{{1}}}|5(b)(vi)}}, and not a separate event under a new Section {{{{{1}}}|5(b)(vii)}} etc.


If, instead of being expressed as an “{{{{{1}}}|Additional Termination Event}}”, which is how the ISDA Mechanism is intended to operate, it is set out as a new “5(b)(vii)” it is not designated therefore as any of an “{{{{{1}}}|Illegality}}”, “{{{{{1}}}|Tax Event}}”, “{{{{{1}}}|Tax Event Upon Merger}}”, “{{{{{1}}}|Credit Event Upon Merger}}” or “{{{{{1}}}|Additional Termination Event}}”, so therefore, read literally, is not caught by the definition of “{{{{{1}}}|Termination Event}}” and none of the Termination provisions bite on it.
I mention this because we have seen it happen. You can take a “fair, large and liberal view" that what the parties intended was to create an {{{{{1}}}|ATE}}, but why suffer that anxiety?

Latest revision as of 07:39, 23 August 2024

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