Template:Csa Rights and Remedies summ

{{Csa Rights and Remedies summ {{{1}}}|{{{1}}}}}

Deficiencies and Excess Proceeds

All versions do the same thing: Once the security has been exercised, proceeds realised and the outstanding amount due settled, the Secured Party must return any excess of the realised proceeds to the posting party, and if there is a shortfall after the security has been realised and applied against the debt, the posting party remains liable for it.

Final Returns

All versions get to more or less the same place: Once all {{{{{1}}}|Obligation}}s are fully settled (with an exception for Taxes — we suppose because they could be imposed retrospectively, so it’s impossible to discharge them definitively — the {{{{{1}}}|Secured Party}} has to give the {{{{{1}}}|Posted Credit Support}} back.

This ought to happen automatically where we are talking about variation margin — Q.E.D., if your {{{{{1}}}|Obligation}}s are all settled you have no {{{{{1}}}|Exposure}} so your counterparty has no grounds to hold {{{{{1}}}|Posted Credit Support}} — but for {{{{{1}}}|Independent Amount}}s or initial margin posted under an 2018 English law IM CSD, this is not necessarily the case: the CSA itself might specify an independent {{{{{1}}}|Independent Amount}} that is not conditional on any {{{{{1}}}|Transaction}}. (This is not how most dealers handle initial margin on their swaps — it tends to be {{{{{1}}}|Transaction}}-specific — but this is how the original CSAs were conceived at the time of the First Men.)