Template:M comp disc 2016 NY VM CSA 7

Quite different to the default provision under the 2016 VM CSA, because like all NY CSAs, the 2016 NY Law VM CSA version is not a Transaction. This means it needs to have its own Events of Default clause, rather than piggy-backing off the ISDA Master Agreement. It also has its own grace period, which defaults to two Local Business Days.

Some interesting things here:

7(i): Failure to Transfer Collateral: note the 2016 NY Law VM CSA bakes in a two Local Business Day grace period. This is one LBD longer than the standard grace period baked into the 2002 ISDA, and one Local Business Day shorter that the standard grace period baked into the 1992 ISDA. Which is nice. The English law CSAs don’t have this problem, since they are deemed to be Transactions under the ISDA, and therefore inherit the ISDA Master Agreement’s Section 5(a)(i) grace periods. Which, you would have thought, has to be the more preferable arrangement.