Template:Isda 3(d) summ

If one is required to “furnish” Specified Information under Section 4, two things can go wrong:

• No show: one can fail to provide it, at all, in which case there is a Breach of Agreement, but be warned: the period before one can enforce such a failure, judged by the yardstick of modern financial contracts, is long enough for a whole kingdom of dinosaurs to evolve and be wiped out; or
• It’s cobblers: one can provide the Specified Information, on time, but it can be a total pile of horse ordure. Now if your Specified Information is, or turns out to be, false, you have no remedy unless you have designated that information subject to the Section 3(d) representation — “Accuracy of Specified Information”.

Now you might ask what good an item of Specified Information can possibly be, if Section 3(d) didn’t apply to it and it could be just made up on the spot without sanction — the JC has certainly asked that question, repeatedly, over many years, and is yet to hear a good answer — but in their quest to cater for the resolutely unguessable predilections of the negotiating community, ISDA has thoughtfully left this preposterous option open.