Failure to Pay or Deliver - ISDA Provision

In gory detail

1992 ISDA 5(a)(i) Failure to Pay or Deliver. Failure by the party to make, when due, any payment under this Agreement or delivery under Section 2(a)(i) or 2(e) required to be made by it if such failure is not remedied on or before the third Local Business Day after notice of such failure is given to the party; (view template)

2002 ISDA 5(a)(i) Failure to Pay or Deliver. Failure by the party to make, when due, any payment under this Agreement or delivery under Section 2(a)(i) or 9(h)(i)(2) or 9(h)(i)(4) required to be made by it if such failure is not remedied on or before the first Local Business Day in the case of any such payment or the first Local Delivery Day in the case of any such delivery after, in each case, notice of such failure is given to the party; (view template)

text==1992 ISDA==

(i) Failure to Pay or Deliver. Failure by the party to make, when due, any payment under this
Agreement or delivery under Section 2(a)(i) or 2(e) required to be made by it if such failure is not
remedied on or before the third Local Business Day after notice of such failure is given to the party;

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) or three (1992) 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) or T+5 (1992).