Unauthorised Transfers - IETA Provision

IETA Emissions Trading Master Agreement

A Jolly Contrarian owner’s manual™

5.3(d) in a Nutshell™

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5.3(d) in all its glory

5.3(d) Where a breach of the No Encumbrances Obligation is caused by the Transfer of an Affected Allowance, the Delivering Party shall be liable for the Encumbrance Loss Amount if, at the date it first acquired, received or purchased such Affected Allowance it was not acting in good faith; otherwise, the Delivering Party shall only be liable for the Encumbrance Loss Amount if, and without prejudice to any other defences available to the Delivering Party (including, but not limited to, any defences of statutes of limitation or similar): 5.3(d)(i) the Receiving Party, whether or not the holder of such Affected Allowance, who is subject to a claim of the Original Affected Party, has, in order to resist or avoid any Encumbrance Loss Amount from arising, used its best endeavours to defend such a claim in respect of that Affected Allowance (including, if available, by relying on Article 40 of the Registries Regulation or any equivalent legal principle under its applicable national law) and was unsuccessful (other than for reasons of its own lack of good faith); or 5.3(d)(ii) the Receiving Party, whether or not the holder of such Affected Allowance, who acted in good faith in respect of its purchase of such Affected Allowance and who is subject to a claim of a third party (other than the Original Affected Party) in respect of that Affected Allowance, has used all reasonable endeavours to mitigate the Encumbrance Loss Amount. edit

Comparison

See our natty emissions comparison table between the IETA, EFET and ISDA versions of emissions trading docs

Resources and Navigation

Emissions trading documentation

ISDA: EU Anatomy • EU Wikitext • EU Nutshell (premium) • UK Anatomy • UK Wikitext (to be merged into EU Anatomy)
IETA: IETA Master Agreement • IETA Wikitext • IETA Nutshell (premium)
EFET: EFET Allowances Appendix • EFET Allowances Wikitext • EFET Nutshell (premium)

Index: Click ᐅ to expand:

Pro tip: for tons of information about EU ETS and EU financial services regulation see Michał Głowacki’s magnificent emissions-euets.com website.

Overview

The definition of Unauthorised Transfer is more or less the same in all three emissions trading documentation regimes. Compare:
ISDA: Unauthorised Transfer
IETA: Unauthorised Transfer
EFET: Unauthorised Transfer
The definition of Affected Allowances is more or less the same in all three emissions trading documentation regimes. Compare:
ISDA: Affected Allowances
IETA: Affected Allowances
EFET: Affected Allowances

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