Template:M summ 2002 ISDA 6(b)

There is a difference between Termination Events that are:

• Non-catastrophic: that affect one, some, or just a subset of Transactions under the ISDA Master Agreement — these might be caused by, say, a Tax Event or a local Illegality, but in any weather they are not much about the solvency, creditworthiness or mendacity of your counterparty (and might have nothing to do with your counterparty at all); and
• Catastrophic: that, by their nature affect — that is, “Affect” — all Transactions. These generally are the bespoke ones your credit department insisted on — or theirs did; they will have something to do with the naughtiness of lack of fibre of your counterparty (or you!), and these function for most respects a lot more like Events of Default.

Thus, in the drafting of ISDA Schedules, CSAs and so on, you will often find laboured reference to Events of Default and/or Termination Events which lead to Early Termination Dates with respect to all outstanding Transactions as some kind of special, hyper-exciting, class of Termination Event.