Template:Isda 6(c) summ

Once you have designated your {{{{{1}}}|Early Termination Date}} under Section {{{{{1}}}|6(a)}}, proceed directly to Section {{{{{1}}}|6(e)}} to determine the {{{{{1}}}|Close-out Amount}} (if you are under a 2002 ISDA, or “tiresomely unlabelled amount payable upon early termination of the ISDA Master Agreement” if you a labouring under a 1992 ISDA).

The key thing to observe here is that, suddenly, all {{{{{1}}}|Transactions}} vanish, and all payments and deliveries due under them are suspended, to be replaced by the single {{{{{1}}}|Close-out Amount}} per {{{{{1}}}|Transaction}}, which is then subsumed into the {{{{{1}}}|Early Termination Amount}} for the whole agreement. Note the {{{{{1}}}|Close-out Amount}} does not have an independent existence as a payable amount owed by any party at any point: it is simply a calculation one makes, by reference to a now extinguished {{{{{1}}}|Transaction}}, on the way to determining the whole-agreement Early Termination Amount. This is why a Transaction-specific guarantee is a flawed type of {{{{{1}}}|Credit Support Document}} — at the very point you call upon it, the {{{{{1}}}|Transaction}} will vanish.