Template:Isda 5(a)(vi) comp
The 2002 ISDA updates the 1992 ISDA’s Cross Default so that if the combined amount outstanding under the two limbs of {{{{{1}}}|Cross Default}} exceed the {{{{{1}}}|Threshold Amount}}, then it will be an {{{{{1}}}|Event of Default}}. Normally, under the 1992 ISDA, {{{{{1}}}|Cross Default}} requires one or the other limbs to be satisfied — you can’t add them together. This was a bit of a snafu.
The two limbs are:
- a default under a financial agreement that would allow a creditor to accelerate any indebtedness that party owes it;
- a failure to pay on the due date under such agreements after the expiry of a grace period.