Template:Nutshell 2002 ISDA Close-out Amount: Difference between revisions
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“{{isdaprov|Close-out Amount}}” means, the Expenses the {{isdaprov|Determining Party}} would incur (expressed as a positive) or gains it would realise (expressed as a negative) in replacing, (a) the material terms of that {{isdaprov|Terminated Transaction}}, and (b) the option rights of the parties in respect of that {{isdaprov|Terminated Transaction}}. <br> | “'''{{isdaprov|Close-out Amount}}'''” means, the {{isdaprov|Expenses}} the {{isdaprov|Determining Party}} would incur (expressed as a positive) or gains it would realise (expressed as a negative) in replacing, (a) the material terms of that {{isdaprov|Terminated Transaction}}, and (b) the option rights of the parties in respect of that {{isdaprov|Terminated Transaction}}. <br> | ||
Any {{isdaprov|Close-out Amount}} will be determined by the {{isdaprov|Determining Party}} in good faith and using commercially reasonable procedures to produce a commercially reasonable result. <br> | Any {{isdaprov|Close-out Amount}} will be determined by the {{isdaprov|Determining Party}} in {{tag|good faith}} and using {{tag|commercially reasonable}} procedures to produce a commercially reasonable result. <br> | ||
The {{isdaprov|Determining Party}} may determine a {{isdaprov|Close-out Amount}} for any group of {{isdaprov|Terminated Transactions}} but, in the aggregate, for not less than all {{isdaprov|Terminated Transactions}}. Each {{isdaprov|Close-out Amount}} will be determined as of the {{isdaprov|Early Termination Date}} or such later date as would be commercially reasonable. <br> | The {{isdaprov|Determining Party}} may determine a {{isdaprov|Close-out Amount}} for any group of {{isdaprov|Terminated Transactions}} but, in the aggregate, for not less than all {{isdaprov|Terminated Transactions}}. Each {{isdaprov|Close-out Amount}} will be determined as of the {{isdaprov|Early Termination Date}} or such later date as would be commercially reasonable. <br> | ||
Revision as of 09:24, 29 May 2015
“Close-out Amount” means, the Expenses the Determining Party would incur (expressed as a positive) or gains it would realise (expressed as a negative) in replacing, (a) the material terms of that Terminated Transaction, and (b) the option rights of the parties in respect of that Terminated Transaction.
Any Close-out Amount will be determined by the Determining Party in good faith and using commercially reasonable procedures to produce a commercially reasonable result.
The Determining Party may determine a Close-out Amount for any group of Terminated Transactions but, in the aggregate, for not less than all Terminated Transactions. Each Close-out Amount will be determined as of the Early Termination Date or such later date as would be commercially reasonable.
Unpaid Amounts in respect of a Terminated Transaction and Expenses are to be excluded in all determinations of Close-out Amounts.
In determining a Close-out Amount, the Determining Party may consider any relevant information, including, without limitation:
(i) quotations for replacement transactions supplied by third parties that may take into account the Determining Party's creditworthiness and the terms of any documentation, between the Determining Party and the third party;
(ii) relevant market data supplied by one or more third parties; or
(iii) information as described above from internal sources if it is of the same type used by the Determining Party in the regular course of its business for the valuation of similar transactions.
unless the Determining Party reasonably believes that they are not readily available or would produce a result that would not satisfy the standards and procedures described in this definition.