Template:M comp disc 2002 ISDA 6(e)

6(e) Payments on Early Termination

6(e)(i) Events of Default (Early Termination Payments)

6(e)(ii) Termination Events (Early Termination Payments)

6(e)(iii) Adjustment for Bankruptcy (Early Termination Payments)

6(e)(iv) Adjustment for Illegality or Force Majeure Event

6(e)(v) Pre-Estimate (Early Termination Payments)

Early Termination Amount is not actually defined in the 1992 ISDA, but is referred to obliquely in Section 6(e) as:

...The amount, if any, payable in respect of an Early Termination Date and determined pursuant to this Section ...

Correctly, it is best referred to as a “Section 6(e) Amount” under the 1992 ISDA, although of course everyone does call it the Early Termination Amount. This inevitability was recognised in the 2002 ISDA, where it is defined in Section 6(e) as follows:

... the amount, if any, payable in respect of that Early Termination Date.

But the 2002 ISDA also has a “Close-out Amount”, so you may want to know what is the difference between the Early Termination Amount and the Close-out Amount. Yes? Go on, then!