Template:Nutshell 2016 CSA 5(c)(ii)(A)

5(c)(ii)(A) if “Interest Transfer” applies the Interest Payer (VM) must transfer an Interest Payment (VM) to the Interest Payer (VM), as required under Paragraph 11(g)(ii) and on any Early Termination Date provided that if “Interest Payment Netting” applies:

(I) if the Interest Payer (VM) is due a payment under the VM CSA on the same date:

(a) it will be reduced by the Interest Payment (VM) (but not below zero), provided that for a Return Amount (VM), the deduction will only apply to the extent of any Base Currency cash portion of the Credit Support Balance (VM); and

(b) after any such reduction the Interest Payer (VM) must transfer the remaining Interest Payment (VM) to the Transferee;

(II) following such a reduction, when working out the Credit Support Balance (VM), the Transferee will be deemed to have received or transferred the Base Currency cash equivalent of the reduced amount, on the due date for the Interest Payment (VM); and