Credit Support Document - ISDA Provision

2002 ISDA Master Agreement A Jolly Contrarian owner’s manual™ Go premium Overview — Summary — Premium — See also — Wikitext Crosscheck: →’87 equivalent →’92 equivalent →’02 equivalent Credit Support Document in a Nutshell™ The JC’s Nutshell™ summary of this term has moved uptown to the subscription-only ninja tier. For the cost of ½ a weekly 🍺 you can get it here. Sign up at Substack. You can even ask questions! Ask about it here. Original text “Credit Support Document” means any agreement or instrument that is specified as such in this Agreement. See ISDA Comparison for a comparison between the 1992 ISDA and the 2002 ISDA. The Varieties of ISDA Experience Subject 2002 (wikitext) 1992 (wikitext) 1987 (wikitext) Preamble Pre Pre Pre Interpretation 1 1 1 Obligns/Payment 2 2 2 Representations 3 3 3 Agreements 4 4 4 EODs & Term Events 5 Events of Default: FTPD • Breach • CSD • Misrep • DUST • Cross Default • Bankruptcy • MWA Termination Events: Illegality • FM • Tax Event • TEUM • CEUM • ATE 5 Events of Default: FTPD • Breach • CSD • Misrep • DUST • Cross Default • Bankruptcy • MWA Termination Events: Illegality • Tax Event • TEUM • CEUM • ATE 5 Events of Default: FTPD • Breach • CSD • Misrep • DUSS • Cross Default • Bankruptcy • MWA Termination Events: Illegality • Tax Event • TEUM • CEUM Early Termination 6 Early Termination: ET right on EOD • ET right on TE • Effect of Designation • Calculations; Payment Date • Payments on ET • Set-off 6 Early Termination: ET right on EOD • ET right on TE • Effect of Designation • Calculations • Payments on ET • Set-off 6 Early Termination: ET right on EOD • ET right on TE • Effect of Designation • Calculations • Payments on ET Transfer 7 7 7 Contractual Currency 8 8 8 Miscellaneous 9 9 9 Offices; Multibranch Parties 10 10 10 Expenses 11 11 11 Notices 12 12 12 Governing Law 13 13 13 Definitions 14 14 14 Schedule Schedule Schedule Schedule Termination Provisions Part 1 Part 1 Part 1 Tax Representations Part 2 Part 2 Part 2 Documents for Delivery Part 3 Part 3 Part 3 Miscellaneous Part 4 Part 4 Part 4 Other Provisions Part 5 Part 5 Part 5 Resources and Navigation Index: Click ᐅ to expand: ISDA

Comparisons

No changes between the versions of this rather unnecessary definition. The men and women of ISDA’s crack drafting squad™ must have stood back and admired the handiwork of their 1992 forebears, high-fived each other and gone, “nice job, dudes and dudettes”.

Basics

Being the document by which “Credit Support” is provided by a Credit Support Provider.

So one large and oddly baffling question is this:

Is a Credit Support Annex a “Credit Support Document”? It is, right? Isn’t it?

Well, some are, and some aren’t. Here is where JC gets all squirrelly on you. We can say this:

A New York law CSA, being a “security interest” collateral arrangement — say what you will about rehypothecation — is a Credit Support Document.

An English law CSA, being a “title transfer” collateral arrangement, is not a Credit Support Document.

An English law Credit Support Deed, which is a “security interest” collateral arrangement but does not have a rehypothecation right, is ... go on, see if you can guess:

Oh, all right, an English Law Credit Support Deed is a Credit Support Document, too.

If you want to know why this is the case — well, be a sport and stump up for the premium content version and then you can find out!

Premium content Here the free bit runs out. Subscribers click 👉 here. New readers sign up 👉 here and, for ½ a weekly 🍺 go full ninja about all these juicy topics👇 JC’s “nutshell” summary of the clause Background reading and long-form essays Don’t confuse a Credit Support Deed with a Credit Support Document An English law CSA is not a Credit Support Document... But a New York law CSA is a Credit Support Document... — AND SERIOUSLY HOW CAN THEY BE DIFFERENT? Is the ’squad just doing this to annoy everyone? And an English law Credit Support Deed? That’s a Credit Support Document too? — Hang on, does the English Law Credit Support Deed have a different “Credit Support Document” status to an English Law Credit Support Annex? WHAT?! It does? Guarantees and why Transaction-specific guarantees under ISDA don’t work What is the actual difference? Does it matter? What happens if you do designate a CSA as a Credit Support Document when you should not have, or when you don’t designate as a Credit Support Document a credit support arrangement when you should have? So much ninjery.

See also

• Credit Support Provider