Credit Support Balance (VM) - VM CSA Provision

2016 VM CSA Anatomy™ →Go uptown In a Nutshell™ Section Credit Support Balance (VM): A Transferor’s “Credit Support Balance (VM)” on a Valuation Date is the aggregate of all Eligible Credit Support (VM) that it has transferred to the Transferee (including any Distributions or redemption proceeds) as reduced by any Return Amounts transferred under Paragraph 2(b), exchanges made under Paragraph 3(c)(ii) or the default provisions under Paragraph 6 and as adjusted for interest accrual under Paragraph 5(c)(ii). Any Equivalent Distributions not transferred when due under Paragraph 5(c)(i) will form part of the Credit Support Balance (VM). view template 2016 VM CSA full text of Section Credit Support Balance (VM): “Credit Support Balance (VM)” means, with respect to a Transferor on a Valuation Date, the aggregate of all Eligible Credit Support (VM) that has been transferred to or received by the Transferee under this Annex, together with any Distributions and all proceeds of any such Eligible Credit Support (VM) or Distributions, as reduced pursuant to Paragraph 2(b), 3(c)(ii) or 6 and as adjusted pursuant to Paragraph 5(c)(ii). Any Equivalent Distributions (or portion thereof) not transferred pursuant to Paragraph 5(c)(i) will form part of the Credit Support Balance (VM). view template Related Agreements Click here for the text of Section Credit Support Balance (VM) in the 1995 English Law CSA Click here for the text of Section Credit Support Balance (VM) in the 2016 English Law VM CSA Click [[{{{3}}} - NY VM CSA Provision|here]] for the text of the equivalent, Section [[{{{3}}} - NY VM CSA Provision|{{{3}}}]] in the 2016 NY Law VM CSA Comparisons 1995 CSA and 2016 VM CSA: click for comparison {{nycsadiff {{{3}}}}} Resources Full wikitext | Nutshell wikitext Navigation 1 (Interpretation) | 2 (Credit Support Obligations) | 3 (Transfers, Calculations and Exchanges) | 4 (Dispute Resolution) | 5 (Title Transfer etc) | 6 (Default) | 7 (Representation) | 8 (Expenses) | 9 (Miscellaneous) | 10 (Definitions) | 11 (Elections and Variables) Index: Click ᐅ to expand: 2016 VM CSA 2018 CSD 1995 CSA 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.

1995 CSA and 2016 VM CSA: click for comparison The Template:2016prov is an important part of the recipe when cooking up a Template:2016prov or Template:2016prov, because it is essentially the amount of credit support you have already posted. The transfer will, therefore, be your Credit Support Amount/Exposure less that sum.

In its own special way it is also a little impish, because it comes and goes depending on how you are doing. If you are doing really well (here’s hoping!) it will be your counterparty’s Template:2016prov, and you won’t have one. This means, if all the Transactions were terminated and the counterparty settled them in full, you would have to give that Credit Support Balance back. But the moment your luck turns, you don’t have a {Template:2016prov any more, but your counterparty does. This is all quite hard to explain elegantly, so ISDA’s crack drafting squad™ doesn’t really try, but the unusual nature of a swap as a bilateral agreement is really the problem.

Note that Template:2016provs and Template:2016prov, as long as they (i) have not yet been returned to the Template:2016prov and (ii) are Template:2016prov, are included in the Template:2016prov. Needless to say, amounts that are not Template:2016prov aren’t counted towards the Template:2016prov but an amount due by Template:2016prov to Template:2016prov which would be Unpaid Amounts on an Event of Default etc, and for which Template:2016prov would be an unsecured creditor.

Note, per the definition of Template:2016prov, “items that are comprised in a Template:2016prov and are not Template:2016prov” are valued at zero.