Template:Isda bankruptcy petition summ

The JC’s colloquial expression for a Bankruptcy Event of Default that meets the criteria set out in Section 5(a)(vii)(4) of the ISDA Master Agreement.

Points to note: Section (A), wherein the petition is presented by a regulator of some kind, the event is an Event of Default in itself. Where, per Section (B), the petition ie presented by a random creditor or other public agitant, there is a grace period in which the subject entity may apply to dismiss the petition — 15 days in the 2002 ISDA, 30 days in the 1987 ISDA and 1992 ISDA — so until this grace period has expired (or a bankruptcy judgment is entered) a Section 5(a)(vii)(4)(B) event is only a Potential Event of default.