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Section 1 is a gentle introduction indeed to the dappled world of the ISDA Master Agreement: much coming from the “goes without saying, but let’s say it anyway” dept of legal wordwrightery — a large department indeed, in the annals of modern legal practice.

Section 1(a)

The large slew of definitions are set out in Section 14. the JC considers each in its own write elsewhere.

Section 1(b)

It wouldn’t be ISDA if there weren’t a hierarchy clause; all this really establishes is the obvious: the pre-printed ISDA Master Agreement itself sits at the bottom and is modified between the counterparties by its Schedule; once negotiated and stuck into the netting database, the Schedule basically sits there unregarded and is modified as needs be for each Transaction under the Confirmation. In point of fact the Confirmations don’t tend to modify anything in the Master and Schedule so much as build on them, but if there is a consistency — and with a document as pedantic and overwrought as the ISDA you just never know — then the most specific, recently edited document will be the one that prevails. {{isda 1(c) summ {{{1}}}|{{{1}}}}}

Basically

In a nutshell — unless you are doing repackagings, and even then don’t get carried away — make sure you understand what Section 1 is there fore, but don’t mess with it.