Template:Nutshell 2002 ISDA 9(h)(i)

9(h)(i) Prior to Early Termination. Before an Early Termination Date is designated for the relevant Transaction:―

(1) Interest on Defaulted Payments. If a party defaults on any payment obligation, it will pay the other party interest on the overdue amount in the same currency from the original due date to the actual payment date (and excluding any relevant Waiting Period), at the Default Rate.

(2) Compensation for Defaulted Deliveries. If a party defaults on any delivery obligation, it will, on demand

(A) compensate the other party as provided for in the relevant Confirmation; and

(B) pay the other party interest on the fair market value of the delivery obligation in the same currency from the original due date to the actual delivery date (and excluding any period to which clause (4) below applies), at the Default Rate. The innocent party will determine such a fair market value in good faith and a commercially reasonable manner as of the scheduled delivery date.

(3) Interest on Deferred Payments. If:―

(A) a party does not pay any amount that, but for Section 2(a)(iii), would have been payable, it will subject to (B) and (C) below, pay interest to the other party on demand in the same currency from the date it would otherwise have been payable to the date it actually becomes payable, at the Applicable Deferral Rate;

(B) a payment is deferred under Section 5(d), the party which would otherwise have been required to make it will (as long as no Event of Default or Potential Event of Default exists, pay interest on that amount on demand in the same currency from the date it would otherwise have been payable to the earlier of the date it is no longer deferred and the date on which the Event of Default or Potential Event of Default occurs, at the Applicable Deferral Rate; or

(C) a party fails to make any payment because of an Illegality or a Force Majeure Event (after giving effect to any deferral period contemplated by clause (B) above), it will, as long as the Illegality or Force Majeure Event continues and no Event of Default or Potential Event of Default exists, pay interest on the overdue amount on demand in the same currency from the date the party failed to make the payment (or, if later, the date the payment is no longer deferred) to the earlier of the date on which the Illegality or Force Majeure Event ceases and the date on which an Event of Default or Potential Event of Default occurs to that party (excluding any period in which compensation is due under clause (B) above), at the Applicable Deferral Rate.

(4) Compensation for Deferred Deliveries. If:―

(A) a party does not settle any delivery that, but for Section 2(a)(iii), would otherwise have been required;

(B) a delivery is deferred under Section 5(d); or

(C) a party fails to deliver because of an Illegality or Force Majeure Event at a time when any applicable Waiting Period has expired,

that party will compensate and pay interest to the other party on demand (after, in the case of clauses (A) and (B) above, such delivery is required) as required the relevant Confirmation.