Agreements - 1987 ISDA Provision
1987 ISDA Interest Rate and Currency Exchange Agreement
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Crosscheck: 4 in a Nutshell™
Original text
See ISDA Comparison for a comparison between the 1992 ISDA and the 2002 ISDA.
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Comparisons
Redlines
- 1987 ⇒ 1992: Redline of the ’92 vs. the ’87: comparison (and in reverse)
- 1992 ⇒ 2002: Redline of the ’02 vs. the ’92: comparison (and in reverse)
- 1987 ⇒ 2002: Redline of the ’92 vs. the ’87: comparison (and in reverse)
Discussion
The 1992 ISDA introduced a new 4(a)(iii) to cover such tax representations as are needed to allow Credit Support Providers to pay without withholding. Beyond that there were minimal changes between the versions, down to punctuation changes, though in Section 4(e) a clearer reference to offices and branches. So that is nice.
Basics
A hodge-podge of “state the bleeding obvious” rules, breach of some of which justifies (eventual) close-out as a “breach of agreement” — agreeing to provide the credit information you have patiently listed in your schedule, flagrantly breaking the law, carelessly losing one’s regulatory authorisations — and random tax provisions and indemnities (providing the necessary tax forms to minimise tax, and pay tax if you don’t).
These are the dull agreements — which by and large don’t justify close-out.
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