Interpretation - IM CSD Provision

From The Jolly Contrarian
(Redirected from 1 - IM CSD Provision)
Jump to navigation Jump to search

2018 ISDA Credit Support Deed (IM) (English law)
A Jolly Contrarian owner’s manual™

Resources and navigation

Paragraph 1 in a Nutshell

Use at your own risk, campers!
Paragraph 1. Interpretation

1(a) Definitions and Inconsistency. Terms defined in the Agreement have the same meanings in this Deed. There are other definitions in Paragraph 12. If this Deed conflicts with the Agreement or an Other CSA, this Deed will prevail to the extend contemplated by this Deed (and where it purports to amend them, the Agreement or any Other CSA). Definitions in Paragraph 13 override any contrary provisions elsewhere in this Deed.
1(b) Secured Party and Chargor. “Secured Party” means either party when acting in that capacity and corresponding references to the “Chargor” means the other party when acting in that capacity. Posted Credit Support (IM) that is described as “held” by a Secured Party means it has been credited to the Segregated Accounts with a Security Interest in that party’s favour under this Deed. References to transfers of assets to or from the Custodian (IM) means transfer to or from the relevant Segregated Accounts.
1(c) Scope of this Deed. When determining a Chargor’s Margin Amount (IM) under this Deed only the Covered Transactions (IM) specified in Paragraph 13 will be counted. Except where it expressly amends them, this Deed will not affect the parties’ rights and obligations under the Agreement or any Other CSA.

1(d) Amendment Effective Date (IM). Any express amendments this Deed makes to the Agreement or any Other CSA, will be effective as of the Amendment Effective Date (IM).

Full text of Paragraph 1

Paragraph 1. Interpretation

1(a) Definitions and Inconsistency. Unless otherwise defined in this Deed, capitalised terms defined in the Agreement have the same meanings in this Deed. Capitalised terms not otherwise defined in this Deed or in the Agreement have the meanings specified pursuant to Paragraph 12, and all references in this Deed to Paragraphs are to Paragraphs of this Deed. In the event of any inconsistency between this Deed and the provisions of the Agreement or any Other CSA, this Deed will prevail in the case of (i) matters concerning regulatory initial margin requirements relating to Covered Transactions (IM) posted by a Chargor and (ii) specific amendments made herein to the Agreement, the Schedule to the Agreement or any Other CSA, and in the event of any inconsistency between Paragraph 13 and the other provisions of this Deed, Paragraph 13 will prevail.
1(b) Secured Party and Chargor. Unless otherwise specified in Paragraph 13, all references in this Deed to the “Secured Party” will be to either party when acting in that capacity and all corresponding references to the “Chargor” will be to the other party when acting in that capacity, provided, however, that a reference herein to Posted Credit Support (IM) being “held” by a Secured Party at any time shall be construed as a reference to the Posted Credit Support (IM) credited to the Segregated Accounts at such time in respect of which a Security Interest has been created in its favour under this Deed. A reference to a transfer of Eligible Credit Support (IM) or Posted Credit Support (IM) to or from the Custodian (IM) is deemed to be a reference to a transfer to or from the relevant Segregated Accounts, as applicable.
1(c) Scope of this Deed. The only Transactions which will be relevant for the purposes of determining a “Margin Amount (IM)” under this Deed with respect to a posting obligation of a Chargor will be the relevant Covered Transactions (IM) specified in accordance with the provisions of Paragraph 13. Except as expressly provided herein, nothing in this Deed will affect the rights and obligations, if any, of either party under the Agreement or any Other CSA.

1(d) Amendment Effective Date (IM). Unless otherwise specified in Paragraph 13, any specific amendments made herein to the Agreement, including the Schedule or any Other CSA, will become effective as of the Amendment Effective Date (IM).

Related agreements and comparisons

Related Agreements
Click here for the text of Section 1 in the 2016 ISDA VM CSA
Comparisons
Template:Csddiff 1

Comments? Questions? Suggestions? Requests? Insults? We’d love to 📧 hear from you.
Sign up for our newsletter.

Content and comparisons

Template:M comp disc 2018 CSD 1

Template

Summary

See also Clause 11(j) where, for reasons best known to itself, ISDA’s crack drafting squad™ put a little bit of the interpretation section there, too. Just to keep you guessing.

Template

See also

Template:M sa 2018 CSD 1

Template

References