Specified Indebtedness - ISDA Provision

In gory detail

1992 ISDA “Specified Indebtedness” means, subject to the Schedule, any obligation (whether present or future, contingent or otherwise, as principal or surety or otherwise) in respect of borrowed money. (view template)

2002 ISDA “Specified Indebtedness” means, subject to the Schedule, any obligation (whether present or future, contingent or otherwise, as principal or surety or otherwise) in respect of borrowed money. (view template)

Commentary

A simple and innocuous enough looking provision. Ahh, but what to make of the definition of borrowed money? Could it include repo? (No, according to Simon Firth - see here)

Of particular interest in the debate on Cross Default. Please refer to that section for a fuller discussion. see also the somewhat clumsier (but materially similar) definition of Specified Indebtedness in the EFET Master Agreement.