(More) Interpretation - IM CSD Provision

2018 ISDA Credit Support Deed (IM) (English law) A Jolly Contrarian owner’s manual™ Resources and navigation Resources: 2018 CSD Wikitext | 2018 CSD Nutshell Wikitext Navigation 1 (Interpretation) | 2 (Security) | 3 (Credit Support Obligations) | 4 (Conditions Precedent, Transfers, Timing, Calculations and Substitutions) | 5 (Dispute Resolution) | 6 (Custody Arrangements and the Control Agreement) | 7 (Default) | 8 (Certain Rights and Remedies) | 9 (Representation) | 10 (Expenses) | 11 (Other Provisions) | 12 (Definitions) | 13 (Elections and Variables) Index: Click ᐅ to expand: 2018 CSD Paragraph 11(j) in a Nutshell™ Use at your own risk, campers! 11(j) Interpretation. All references to laws and regulations in this Deed will be to those laws and regulations as they are amended or replaced from time to time, and will include subordinate regulations. To work out whether if a Transaction is a Covered Transaction (IM) and what margin applies to it, apply the regulations in effect when the Transaction was executed. view template Full text of Paragraph 11(j) 11(j) Interpretation. Unless otherwise specified in Paragraph 13, references in this Deed to a law, statute or statutory provision include (i) such law, statute or statutory provision as from time to time amended, modified, re-enacted or consolidated whether before or after the date of this Deed; and (ii) any subordinate legislation from time to time made, amended, modified, re-enacted or consolidated, whether before or after the date of this Deed under any such law, statute or statutory provision. Notwithstanding the foregoing, for the purposes of determining (i) if a Transaction is a Covered Transaction (IM) and (ii) what version of any standardised initial margin schedule applies to a particular Transaction (if the parties have otherwise agreed to apply such standardised initial margin schedule to such Transaction), the relevant law, statute, statutory provision or subordinate legislation will be such law, statute, statutory provision or subordinate legislation as in effect on the date the relevant Transaction was entered into. view template Related agreements and comparisons Related Agreements Click here for the text of Section NA in the 2016 ISDA VM CSA Comparisons Template:Csddiff 11(j) Comments? Questions? Suggestions? Requests? Insults? We’d love to 📧 hear from you. Sign up for our newsletter.

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Summary

Specially for anoraks, completists and those fans of interpretation and construction clauses who just didn’t feel quite satisfied with the original Interpretation clause in the 2018 English law IM CSD — look, it came early on in the piece, and was over quite quickly, even though it has fully four sub-clauses in it — those cheeky little rascals in ISDA’s crack drafting squad™ threw in this little number like a late, late encore — you know, just when your hands are getting sore from all the slow clapping, the emergent enthusiasm is petering out of the stadium as it seems the show is over and, goddamn it you just want to go home now anyway, and you’re turning to collect your coat because you know they’re about to bring up the house lights and shoo everyone out of the building and BAM!!! THERE IT IS!!! MORE INTERPRETATION!!!

Statutes as amended from time to time. Like, you don’t say...

It seems fussy, peculiar and bloody-minded, I know — and what a thing to suddenly remember, and crowbar into the dog days of the eleventh paragraph! — but for those earnestly wondering what sort of paranoid freak would even entertain the fantastical idea that “laws” might not be taken to refer to those laws as they presently exist, or as they have been replaced from time to time; that is why anyone even needs to say what the 2018 English law IM CSD says in Paragraph 11(j) — there is a straightforward answer: the sort of freak who the industry turns to to issue netting opinions about ERISA funds. That’s who.

To this day ERISA plans are treated as non-nettable precisely because soe ERISA genius at Cadwallader can’t quite get himself comfortable that references in ERISA legislation to “the Bankruptcy Code” doesn’t mean the Bankruptcy Code as it was in 1972 before they had invented derivatives, and at which time the safe harbor for derivatives netting arrangements hadn’t been implemented.

All too horribly true.

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See also

• The actual Interpretation clause in the 2018 English law IM CSD
• ERISA netting opinions

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