1992 ISDA Master Agreement

ISDA Anatomy™ →Go uptown Index: Click ᐅ to expand: ISDA Navigation 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 Tell me more Sign up for our newsletter — or just get in touch: for ½ a weekly 🍺 you get to consult JC. Ask about it here.

The one that came before the 2002 ISDA. You can find the full tomato, in wikitext, here.

You can access below a clause-by-clause comparative analysis — that does not go too deep — below, but if you want the whole enchilada then premium content is for you.

Why they* moved away from the 1992 ISDA Master Agreement

*Those that did move away, that is.

The 2002 ISDA was introduced, primarily, to:

• Loss/MQ begone: Finally take out to the woodshed the whole Loss/Market Quotation farrago (and all that First Method and Second Method nonsense) by introducing the Close-out Amount.
• Reference market makers, Settlement Amounts also begone: That meant no need for Reference Market-makers, Settlement Amounts and so on so they went too.
• Force majeure: finally make an honest man out of , well, God, by adding a Force Majeure Event under Section 5(b)(ii) — hitherto parties had boshed up something custom each time.
• Waiting Time for Illegality: The 2002 ISDA builds out Illegality to include the Waiting Period concept (also used in Force Majeure Event come to think of it).
• Set-off: To finally end the gruesome cottage industry of half-arsed, half-witted set-off provisions that don’t really work, by providing an express, fully-arsed half-witted set-off provision that doesn’t really work (Set-off under Section 6(f)).

That table of contents in full

1 Interpretation

1(a) Definitions
1(b) Inconsistency
1(c) Single Agreement

2 Obligations

2(a) General Conditions (incl Section 2(a)(iii))
2(b) Change of Account
2(c) Netting
2(d) Deduction or Withholding for Tax
2(e) Default Interest

3 Representations

3(a) Basic Representations
3(b) Absence of Certain Events
3(c) Absence of Litigation
3(d) Accuracy of Specified Information
3(e) Payer Tax Representations
3(f) Payee Tax Representations

4 Agreements

4(a) Furnish Specified Information
4(b) Maintain Authorisations
4(c) Comply with Laws
4(d) Tax Agreement
4(e) Payment of Stamp Tax

5 Events of Default and Termination Events

5(a) Events of Default

5(a)(i) Failure to Pay or Deliver

5(a)(ii) Breach of Agreement

5(a)(iii) Credit Support Default

5(a)(iv) Misrepresentation

5(a)(v) Default Under Specified Transaction

5(a)(vi) Cross Default

5(a)(vii) Bankruptcy

5(a)(viii) Merger Without Assumption

5(b) Termination Events

5(b)(i) Illegality

5(b)(ii) Tax Event

5(b)(iii) Tax Event Upon Merger

5(b)(iv) Credit Event Upon Merger

5(b)(v) Additional Termination Event

5(c) Event of Default and Illegality

6 Early Termination

6(a) Right to Terminate Following Event of Default

6(b) Right to Terminate Following Termination Event

6(b)(i) Notice (of Termination Event)

6(b)(ii) Transfer to Avoid Termination Event

6(b)(iii) Two Affected Parties

6(b)(iv) Right to Terminate

6(c) Effect of Designation

6(d) Calculations

6(e) Payments on Early Termination

6(e)(i) Payments on Events of Default)

6(e)(ii) Payments on Termination Events

6(e)(iii) Adjustment for Bankruptcy

6(e)(iv) Pre-Estimates

7 Transfer

8 Contractual Currency

8(a) Payment in Contractual Currency
8(b) Judgments
8(c) Separate Indemnities
8(d) Evidence of Loss

9 Miscellaneous

9(a) Entire Agreement
9(b) Amendments
9(c) Survival of Obligations
9(d) Remedies Cumulative
9(e) Counterparts and Confirmations
9(f) No Waiver of Rights
9(g) Headings

10 Offices; Multibranch Parties

11 Expenses

12 Notices

12(a) Effectiveness
12(b) Change of Addresses

13 Governing Law

13(a) Governing Law
13(b) Jurisdiction
13(c) Service of Process
13(d) Waiver of immunities

14 Definitions

Additional Termination Event
Affected Party
Affected Transactions
Affiliate
Applicable Rate
Burdened Party
Change in Tax Law
consent
Credit Event Upon Merger
Credit Support Document
Credit Support Provider
Default Rate
Defaulting Party
Early Termination Date
Event of Default
Illegality
Indemnifiable Tax
law
Local Business Day
Loss
Market Quotation
Non-default Rate
Non-defaulting Party
Office
Potential Event of Default
Reference Market-makers
Relevant Jurisdiction
Scheduled Payment Date
Set-off
Settlement Amount
Specified Entity
Specified Indebtedness
Specified Transaction
Stamp Tax
Tax
Tax Event
Tax Event Upon Merger
Terminated Transactions
Termination Currency
Termination Currency Equivalent
Termination Event
Termination Rate
Unpaid Amounts

See also

• Our somewhat sardonic comparison of the 1992 and 2002 ISDA forms