Notification Time - CSA Provision

CSA Anatomy™ →Go uptown “Notification Time” has the meaning specified in Paragraph 11(d)(iv). (View Template) Template:ISDA English Law Credit Support Annex 2016 11(c)(iv) (View Template) Resources Full wikitext | Nutshell wikitext English Law | 1 Interpretation | 2 Credit Support Obligations | 3 Transfers, Calculations and Exchanges | 4 Dispute Resolution | 5 Transfer of Title, No Security Interest, Distributions and Interest Amount | 6 Default | 7 Representation | 8 Expenses | 9 Miscellaneous | 10 Definitions | 11 Elections and Variables · Base Currency and Eligible Currency · Credit Support Obligations · Valuation and Timing · Exchange Date · Dispute Resolution · Distributions and Interest Amount · Addresses for Transfers · Credit Support Offsets · Other CSA 2018 ISDA Credit Support Deed for Initial Margin Index: Click ᐅ to expand: CSA Tell me more Sign up for our newsletter — or just get in touch: for ½ a weekly 🍺 you get to consult JC. Ask about it here.

CSA Anatomy™ →Go uptown “Notification Time” has the meaning specified in Paragraph 11(c)(iv). (View Template) 11(c)(iv) “Notification Time” means 1:00 p.m., London time, on a Local Business Day, unless otherwise specified here: [SPECIFY] (View Template) Resources Full wikitext | Nutshell wikitext English Law | 1 Interpretation | 2 Credit Support Obligations | 3 Transfers, Calculations and Exchanges | 4 Dispute Resolution | 5 Transfer of Title, No Security Interest, Distributions and Interest Amount | 6 Default | 7 Representation | 8 Expenses | 9 Miscellaneous | 10 Definitions | 11 Elections and Variables · Base Currency and Eligible Currency · Credit Support Obligations · Valuation and Timing · Exchange Date · Dispute Resolution · Distributions and Interest Amount · Addresses for Transfers · Credit Support Offsets · Other CSA 2018 ISDA Credit Support Deed for Initial Margin Index: Click ᐅ to expand: CSA Tell me more Sign up for our newsletter — or just get in touch: for ½ a weekly 🍺 you get to consult JC. Ask about it here.

Relevant for the definition of Settlement Day and collateral Transfers: basically, as per the flush wording at the end of Paragraph 3(a) if a demand for a transfer is received after the Notification Time on a given date, the relevant transfer will made on the Settlement Day after the day on which the Transfer demand was made.

“Settlement Day” means, in relation to a date, (i) with respect to a transfer of cash or other property (other than securities), the next Local Business Day and (ii) with respect to a transfer of securities, the first Local Business Day after such date on which settlement of a trade in the relevant securities, if effected on such date, would have been settled in accordance with customary practice when settling through the clearance system agreed between the parties for delivery of such securities or, otherwise, on the market in which such securities are principally traded (or, in either case, if there is no such customary practice, on the first Local Business Day after such date on which it is reasonably practicable to deliver such securities).

(View Template)

How the business days work for demands under a Credit Support Annex

1. Valuation and demand: A {{{{{1}}}|Transferee}} may demand a {{{{{1}}}|Delivery Amount}} (Para {{{{{1}}}|2(a)}}) or a {{{{{1}}}|Return Amount}} Para {{{{{1}}}|2(b)}}) “on or promptly following a {{{{{1}}}|Valuation Date}}”.
2. Valuation Date: A “{{{{{1}}}|Valuation Date}}” means a day on which banks are open in at least one {{{{{1}}}|Valuation Date Location}} for each party.
   1. Each party can specify however many {{{{{1}}}|Valuation Date Location}}s it likes.
   2. Tip: the fewer you specifiy, the greater the chance none will be open on a given day, and you will be excused from a margin call, so don’t overdo it. One should be ample.
3. Settlement: Any {{{{{1}}}|Delivery Amount}} or {{{{{1}}}|Return Amount}} must be settled (Para {{{{{1}}}|3(a)}}) by the close of business on the {{{{{1}}}|Regular Settlement Day}} relating to the date such demand is received (if received before the {{{{{1}}}|Notification Time}} (spoiler: usually 11 am, noon or 1pm)), or the {{{{{1}}}|Regular Settlement Day}} relating to the day after the date such demand is received (if received after the {{{{{1}}}|Notification Time}}).
4. Regular Settlement Day: A “{{{{{1}}}|Regular Settlement Day}}” means the same {{{{{1}}}|Local Business Day}} — careful: as defined in the 1995 CSA, not the ISDA Master Agreement — on which the demand is made.
5. Local Business Day: A “{{{{{1}}}|Local Business Day}}” (under the 1995 CSA) means, in the case of notices, a day on which banks are open in the address for the notice most recently specified by the Recipient. What if demand is made on a day that is not a {{{{{1}}}|Local Business Day}}? Simple: by dint of Section 12 of the ISDA Master Agreement, the notice will be deemed given on the next Local Business Day (as defined in the ISDA Master Agreement, not the 1995 CSA).

Easy.