Failure to Pay or Deliver - ISDA Provision

ISDA Anatomy™ →Go uptown Template:5(a)(i)isda Template:ISDA Master Agreement 5(a)(i) 5(a)(i) (view template) {{{{{5}}}isda}} {{ISDA_Master_Agreement {{{5}}} {{{4}}}}} ([[Template:ISDA_Master_Agreement_{{{5}}}_{{{4}}}|view template]]) Index: Click ᐅ to expand: ISDA Navigation See ISDA Comparison for a comparison between the 1992 ISDA and the 2002 ISDA. The Varieties of ISDA Experience Subject 2002 (wikitext) 1992 (wikitext) 1987 (wikitext) Preamble Pre Pre Pre Interpretation 1 1 1 Obligns/Payment 2 2 2 Representations 3 3 3 Agreements 4 4 4 EODs & Term Events 5 Events of Default: FTPD • Breach • CSD • Misrep • DUST • Cross Default • Bankruptcy • MWA Termination Events: Illegality • FM • Tax Event • TEUM • CEUM • ATE 5 Events of Default: FTPD • Breach • CSD • Misrep • DUST • Cross Default • Bankruptcy • MWA Termination Events: Illegality • Tax Event • TEUM • CEUM • ATE 5 Events of Default: FTPD • Breach • CSD • Misrep • DUSS • Cross Default • Bankruptcy • MWA Termination Events: Illegality • Tax Event • TEUM • CEUM Early Termination 6 Early Termination: ET right on EOD • ET right on TE • Effect of Designation • Calculations; Payment Date • Payments on ET • Set-off 6 Early Termination: ET right on EOD • ET right on TE • Effect of Designation • Calculations • Payments on ET • Set-off 6 Early Termination: ET right on EOD • ET right on TE • Effect of Designation • Calculations • Payments on ET Transfer 7 7 7 Contractual Currency 8 8 8 Miscellaneous 9 9 9 Offices; Multibranch Parties 10 10 10 Expenses 11 11 11 Notices 12 12 12 Governing Law 13 13 13 Definitions 14 14 14 Schedule Schedule Schedule Schedule Termination Provisions Part 1 Part 1 Part 1 Tax Representations Part 2 Part 2 Part 2 Documents for Delivery Part 3 Part 3 Part 3 Miscellaneous Part 4 Part 4 Part 4 Other Provisions Part 5 Part 5 Part 5 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.

Failure to Pay under Section 5(a)(i) if the ISDA Master Agreement: where a party fails to pay or deliver on time and does not remedy on or before the 3rd local business day (being the default under a 1992 ISDA, or the first business day after (under the 2002 ISDA) after notice. This requires:

• A Failure to pay, on day T
• Notice of the failure (which by defintion can be validly given only after close on on the failure date and, by dint of Section 12(a) (Notices), is deemed to be effective on the following business day, T+1)
• Grace Period: After the notice is delivered, another one (2002 ISDA) or three (1992 ISDA) full business days (therefore to the end of T+2 (2002) or T+4 (1992))
• The termination may only be served after close at the expiry of the grace period, so therefore the first day on which a termination notice following a failure to pay Event of Default can be effective under an ISDA is T+3 (2002 ISDA) or T+5 1992 ISDA.