Template:Nutshell 2016 CSA 5(c)(ii)(A)

5(c)(ii)(A) if “Interest Transfer” applies the Interest Payer (VM) will transfer an Interest Payment (VM) to the Interest Payer (VM), as required under Paragraph 11(g)(ii) and on any Early Termination Date. If “Interest Payment Netting” applies:

(I) if the Interest Payer (VM) is due a Delivery Amount (VM) or Return Amount (VM) for the same date:

(a) it will be reduced by the Interest Payment (VM) (but not below zero), provided that, in case of such Return Amount (VM), if the part of the Credit Support Balance (VM) which is cash in the Base Currency is less than such Interest Payment (VM), such reduction will only be to the extent of that cash portion (the “Eligible Return Amount (VM)”); and

(b) the Interest Payer (VM) will transfer to the Interest Payer (VM) any excess of such Interest Payment (VM) after the reduction;

(II) if a Delivery Amount (VM) or a Return Amount (VM) is so reduced, for purposes of working out the Credit Support Balance (VM) only, the Transferee will be deemed to have received or transferred in cash in the Base Currency the reduced amount, on the day on which the Interest Payment (VM) was due; and