Delivery Amount - VM CSA Provision

From The Jolly Contrarian
Revision as of 22:03, 28 December 2019 by Amwelladmin (talk | contribs)
Jump to navigation Jump to search
2016 VM CSA Anatomy™


In a Nutshell™ Section 2(a):

2(a) Delivery Amount. If the Transferee demands a Delivery Amount at least equal to the Transferor’s Minimum Transfer Amount on (or following) a Valuation Date, the Transferor must transfer Eligible Credit Support with a Value of the Delivery Amount (rounded under Paragraph 11(c)(vi)(B)) to the Transferee. The “Delivery Amount” is the amount by which the Transferee’s Exposure exceeds the Value of the Transferor’s Credit Support Balance on that Valuation Date (adjusted for pending but unsettled transfers).
view template

2016 VM CSA full text of Section 2(a):

2(a) Delivery Amount (VM). Subject to Paragraphs 3 and 4, upon a demand made by the Transferee on or promptly following a Valuation Date, if the Delivery Amount (VM) for that Valuation Date equals or exceeds the Transferor’s Minimum Transfer Amount, then the Transferor will transfer to the Transferee Eligible Credit Support (VM) having a Value as of the date of transfer at least equal to the applicable Delivery Amount (VM) (rounded pursuant to Paragraph 11(c)(vi)(B)). Unless otherwise specified in Paragraph 11(c), the “Delivery Amount (VM)” applicable to the Transferor for any Valuation Date will equal the amount by which:

(i) the Transferee’s Exposure
exceeds
(ii) the Value as of that Valuation Date of the Transferor’s Credit Support Balance (VM) (adjusted to include any prior Delivery Amount (VM) and to exclude any prior Return Amount (VM) , the transfer of which, in either case, has not yet been completed and for which the relevant Regular Settlement Day falls on or after such Valuation Date).

view template

Related Agreements
Click here for the text of Section 2(a) in the 1995 English Law CSA
Click here for the text of Section 2(a) in the 2016 English Law VM CSA
Click [[{{{3}}} - NY VM CSA Provision|here]] for the text of the equivalent, Section [[{{{3}}} - NY VM CSA Provision|{{{3}}}]] in the 2016 NY Law VM CSA
Comparisons
1995 CSA and 2016 VM CSA: click for comparison
{{nycsadiff {{{3}}}}}

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.

1995 CSA and 2016 VM CSA: click for comparison

Retrieved from "https://jollycontrarian.com/index.php?title=Delivery_Amount_-_VM_CSA_Provision&oldid=35988"