Template:2006 ISDA Definitions Business Day Convention

Section 4.12. Business Day Convention.

(a)“Business Day Convention” means the convention for adjusting any relevant date if it would otherwise fall on a day that is not a Business Day. The Following terms, when used in conjunction with the term "Business Day Convention" and a date, shall mean that an adjustment will be made if that date would otherwise fall on a day that is not a Business Day so that:

(i) if "Following" is specified, that date will be the first Following day that is a Business Day;

(ii) if "Modified Following" or "Modified" is specified, that date will be the first Following day that is a Business Day unless that day falls in the next calendar month, in which case that date will be the first Modified Preceding day that is a Business Day; and

(iii) if "Modified Preceding" is specified, that date will be the first Modified Preceding day that is a Business Day.

(b) The Business Day Convention applicable to a date that is specified in these 2006 Definitions or in a Confirmation to be subject to adjustment in accordance with an applicable Business Day Convention shall be the Business Day Convention specified for that date in these 2006 Definitions or in that Confirmation or, if a Business Day Convention is not so specified for that date but a Business Day Convention is specified for a Swap Transaction, shall be the Business Day Convention specified in the Confirmation for that Swap Transaction.