Template:Isda 5(a)(v) comp

{{{{{1}}}|DUST}} has been expanded in five significant ways by the 2002 ISDA:

• Defaults require the acceleration of just the {{{{{1}}}|Specified Transaction}} in question (for general defaults) but off all outstanding transactions under the relevant master agreement (for delivery defaults). This change was made with repos and stock loans in mind where delivery failures under are common and do not of themselves indicate weakness in the {{{{{1}}}|Defaulting Party}}’s creditworthiness.
• DUST under the 2002 ISDA can be triggered by default under a credit support arrangement relating to a Specified Transaction. These weren’t included for the 1992 ISDA DUST.
• The cure period for a failure to make a final or early termination payment ona {{{{{1}}}|Specified Transaction}} has been reduced from three days to one.
• Repudiation was modified in two significant ways:

• The phrase “or challenges the validity of” was added after “disaffirms, disclaims, repudiates or rejects” to reduce ambiguity as to whether a party’s action constitutes a repudiation; and
• A {{{{{1}}}|Non-Defaulting Party}} must have evidence of the repudiation that is executed and delivered by the repudiating entity;

• The “{{{{{1}}}|Specified Transaction}}” concept has been broadened to include additional transaction types such as repos, and to include a catchall clause designed to include any future derivative products that have not been thought of yet.