Template:Nutshell 1995 CSA 4(a)
4(a) Disputed Calculations or Valuations. If a Disputing Party disputes the Value of a Delivery Amount, Return Amount or any Eligible Credit Support:
- (1) it must notify the other party and the Valuation Agent by close of business on the Local Business Day following receipt of the demand:
- (2) It must transfer any undisputed amount by close of business on the Settlement Day following the demand;
- (3) the parties will try resolve the dispute; and
- (4) if they haven’t done so by the Resolution Time, then:
- (i) Delivery Amounts and Return Amounts: the Valuation Agent will recalculate the Exposure and the Value as of the Recalculation Date by:
- (A) keeping any part of the calculations that aren’t disputed;
- (B) On the disputed portion of the Exposure seeking four (or if not available, fewer) mid-market quotations from Reference Market-makers and taking the average; provided that if no quotations are available the Valuation Agent’s original calculations will stand; and
- (C) calculating theoutstanding Credit Support Balance per Paragraph 11(e)(ii);
- (ii) Equivalent Credit Support recalculating the Value as of the date of transfer under Paragraph 11(e)(ii).
- (i) Delivery Amounts and Return Amounts: the Valuation Agent will recalculate the Exposure and the Value as of the Recalculation Date by:
The Valuation Agent will notify each party by the Notification Time on the Local Business Day following the Resolution Time. Then the appropriate transfer has to be made.