Expenses - NY VM CSA Provision

2016 NY VM CSA Anatomy™ Go Premium In a Nutshell™ Section 10: 10. Expenses 10(a) General. Each party will be liable for its own costs of performing its obligations under this Annex. 10(b) Posted Credit Support (VM). When it finds out about them the Pledgor must promptly pay any taxes imposed on Posted Credit Support (VM) while the Secured Party actually holds it in custody, even if the Secured Party later reuses it under Paragraph 6(c). This obligation doesn’t extend to taxes arising from the act of reuse under Paragraph 6(c). 10(c) Liquidation/Application of Posted Credit Support (VM). Where there is a Defaulting Party it must pay on demand all the the Non-defaulting Party’s reasonable costs of liquidating any Posted Credit Support (VM) under Paragraph 8 as set out in the Expenses Section of the ISDA Master Agreement. If there is no Defaulting Party, the parties will share the costs. view template 2016 NY VM CSA full text of Section 10: Paragraph 10 Expenses 10(a) General. Except as otherwise provided in Paragraphs 10(b) and 10(c), each party will pay its own costs and expenses in connection with performing its obligations under this Annex and neither party will be liable for any costs and expenses incurred by the other party in connection herewith. 10(b) Posted Credit Support (VM). The Pledgor will promptly pay when due all taxes, assessments or charges of any nature that are imposed with respect to Posted Credit Support (VM) held by the Secured Party upon becoming aware of the same, regardless of whether any portion of that Posted Credit Support (VM) is subsequently disposed of under Paragraph 6(c), except for those taxes, assessments and charges that result from the exercise of the Secured Party’s rights under Paragraph 6(c). 10(c) Liquidation/Application of Posted Credit Support (VM). All reasonable costs and expenses incurred by or on behalf of the Secured Party or the Pledgor in connection with the liquidation and/or application of any Posted Credit Support (VM) under Paragraph 8 will be payable, on demand and pursuant to the Expenses Section of this Agreement, by the Defaulting Party or, if there is no Defaulting Party, equally by the parties. view template Related Agreements Click here for the text of Section 10 in the 1994 New York law CSA Click here for the text of Section 8 in the 1995 English Law CSA Click here for the text of Section 8 in the 2016 English Law VM CSA Comparisons Template:2nycsadiff 10 Template:Nycsadiff 10 1995 CSA and 2016 VM CSA: click for comparison Resources Full wikitext | Nutshell wikitext Navigation 1 (Interpretation) | 2 (Security Interest) | 3 (Credit Support Obligations) | 4 ( Conditions Precedent, Transfer Timing, Calculations and Substitutions) | 5 (Dispute Resolution) | 6 (Holding and Using Posted Collateral (VM)) | 7 (Events of Default) | 8 (Certain Rights and Remedies) | 9 (Representations) | 10 (Expenses) | 11 (Miscellaneous) | 12 (Definitions) | 13 (Elections and Variables) Index: Click ᐅ to expand: 2016 NY VM CSA Comments? Questions? Suggestions? Requests? Insults? We’d love to 📧 hear from you. Sign up for our newsletter.

English law CSAs

Paragraph 8 of the 2016 VM CSA is identical to the equivalent in the 1995 CSA. Being a function of the common law of contract, not to mention common sense — why would someone else be liable for your costs and expenses of performing a contract unless it specifically said they would be? — it falls into the goes without saying category. But ISDA’s crack drafting squad™ said it anyway.

NY law CSA

Paragraph 10(a) of the 2016 NY Law VM CSA is largely the same as Paragraph 8 of the English law versions — it carries on in 10(b) and 10(c) to rabbit on a bit about Posted Collateral — but, neglects to specifically call out stamp duty. How to deal with stamp duties is the subject of Paragraphs 10(b) and 10(c), of which there is no equivalent in the English law document.