Comply With Laws - 1992 ISDA Provision
Jump to navigation
Jump to search
Overview
Section 4(c) represents another impeachable outing for the 1992 all-star line-up of ISDA’s crack drafting squad™. Their successors, a decade down the line, couldn’t see any way to improve on their work. The two versions are thus the same.
Summary
Hardly controversial that one must obey the law, but note this apparently inoffensive covenant converts that general public obligation into a private civil one, with definitive commercial consequences to your counterparty, hence the couching of the language in terms of materiality (twice) and specific ability to perform obligations under the ISDA Master Agreement.
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 👇
|
- The JC’s famous Nutshell™ summary of this clause