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2016 ISDA VM NY CSA: Difference between revisions
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{{nyvmcsaprov|11(e)}} {{nyvmcsaprov|Demands and Notices}}. All {{nyvmcsaprov|Demands and Notices}} made by a party under this Annex will be made as specified in the Notices Section of this Agreement, except as otherwise provided in Paragraph {{nyvmcsaprov|13}}.<br> | {{nyvmcsaprov|11(e)}} {{nyvmcsaprov|Demands and Notices}}. All {{nyvmcsaprov|Demands and Notices}} made by a party under this Annex will be made as specified in the Notices Section of this Agreement, except as otherwise provided in Paragraph {{nyvmcsaprov|13}}.<br> | ||
{{nyvmcsaprov|11(f)}} '''{{nyvmcsaprov|Specifications of Certain Matters}}'''. Anything referred to in this Annex as being specified in Paragraph {{nyvmcsaprov|13}} also may be specified in one or more Confirmations or other documents and this Annex will be construed accordingly.<br> | {{nyvmcsaprov|11(f)}} '''{{nyvmcsaprov|Specifications of Certain Matters}}'''. Anything referred to in this Annex as being specified in Paragraph {{nyvmcsaprov|13}} also may be specified in one or more Confirmations or other documents and this Annex will be construed accordingly.<br> | ||
{{nyvmcsaprov|11(g)}} '''{{nyvmcsaprov|Legally Ineligible Credit Support (VM)}}'. Unless otherwise specified in Paragraph {{nyvmcsaprov|13}}, upon delivery of a {{nyvmcsaprov|Legal Ineligibility Notice}} by a party, each item of {{nyvmcsaprov|Eligible Credit Support (VM)}} (or a specified amount of such item) identified in such notice (i) will cease to be {{nyvmcsaprov|Eligible Credit Support (VM)}} for purposes of {{nyvmcsaprov|Transfer}}s to such party as the {{nyvmcsaprov|Secured Party}} hereunder as of the applicable {{nyvmcsaprov|Transfer Ineligibility Date}}, (ii) will cease to be {{nyvmcsaprov|Eligible Credit Support (VM)}} for the other party as the {{nyvmcsaprov|Pledgor}} for all purposes hereunder as of the {{nyvmcsaprov|Total Ineligibility Date}} and (iii) will have a {{nyvmcsaprov|Value}} of zero on and from the {{nyvmcsaprov|Total Ineligibility Date}}.<br> | {{nyvmcsaprov|11(g)}} '''{{nyvmcsaprov|Legally Ineligible Credit Support (VM)}}'''. Unless otherwise specified in Paragraph {{nyvmcsaprov|13}}, upon delivery of a {{nyvmcsaprov|Legal Ineligibility Notice}} by a party, each item of {{nyvmcsaprov|Eligible Credit Support (VM)}} (or a specified amount of such item) identified in such notice (i) will cease to be {{nyvmcsaprov|Eligible Credit Support (VM)}} for purposes of {{nyvmcsaprov|Transfer}}s to such party as the {{nyvmcsaprov|Secured Party}} hereunder as of the applicable {{nyvmcsaprov|Transfer Ineligibility Date}}, (ii) will cease to be {{nyvmcsaprov|Eligible Credit Support (VM)}} for the other party as the {{nyvmcsaprov|Pledgor}} for all purposes hereunder as of the {{nyvmcsaprov|Total Ineligibility Date}} and (iii) will have a {{nyvmcsaprov|Value}} of zero on and from the {{nyvmcsaprov|Total Ineligibility Date}}.<br> | ||
“'''{{nyvmcsaprov|Legal Ineligibility Notice}}'''” means a written notice from the {{nyvmcsaprov|Secured Party}} to the {{nyvmcsaprov|Pledgor}} in which the {{nyvmcsaprov|Secured Party}} (i) represents that the {{nyvmcsaprov|Secured Party}} has determined that one or more items of {{nyvmcsaprov|Eligible Credit Support (VM)}} (or a specified amount of any such item) either has ceased to satisfy, or as of a specified date will cease to satisfy, collateral eligibility requirements under law applicable to the {{nyvmcsaprov|Secured Party}} requiring the collection of variation margin (the “'''{{nyvmcsaprov|Legal Eligibility Requirements}}'''”), (ii) lists the item(s) of {{nyvmcsaprov|Eligible Credit Support (VM)}} (and, if applicable, the specified amount) that have ceased to satisfy, or as of a specified date will cease to satisfy, the {{nyvmcsaprov|Legal Eligibility Requirements}}, (iii) describes the reason(s) why such item(s) of {{nyvmcsaprov|Eligible Credit Support (VM)}} (or the specified amount thereof) have ceased to satisfy, or will cease to satisfy, the {{nyvmcsaprov|Legal Eligibility Requirements}} and (iv) specifies the {{nyvmcsaprov|Total Ineligibility Date}} and, if different, the {{nyvmcsaprov|Transfer Ineligibility Date}}.<br> | “'''{{nyvmcsaprov|Legal Ineligibility Notice}}'''” means a written notice from the {{nyvmcsaprov|Secured Party}} to the {{nyvmcsaprov|Pledgor}} in which the {{nyvmcsaprov|Secured Party}} (i) represents that the {{nyvmcsaprov|Secured Party}} has determined that one or more items of {{nyvmcsaprov|Eligible Credit Support (VM)}} (or a specified amount of any such item) either has ceased to satisfy, or as of a specified date will cease to satisfy, collateral eligibility requirements under law applicable to the {{nyvmcsaprov|Secured Party}} requiring the collection of variation margin (the “'''{{nyvmcsaprov|Legal Eligibility Requirements}}'''”), (ii) lists the item(s) of {{nyvmcsaprov|Eligible Credit Support (VM)}} (and, if applicable, the specified amount) that have ceased to satisfy, or as of a specified date will cease to satisfy, the {{nyvmcsaprov|Legal Eligibility Requirements}}, (iii) describes the reason(s) why such item(s) of {{nyvmcsaprov|Eligible Credit Support (VM)}} (or the specified amount thereof) have ceased to satisfy, or will cease to satisfy, the {{nyvmcsaprov|Legal Eligibility Requirements}} and (iv) specifies the {{nyvmcsaprov|Total Ineligibility Date}} and, if different, the {{nyvmcsaprov|Transfer Ineligibility Date}}.<br> | ||
“'''{{nyvmcsaprov|Total Ineligibility Date}}'''” means the date on which the relevant item of {{nyvmcsaprov|Eligible Credit Support (VM)}} (or a specified amount of such item) has ceased to satisfy, or will cease to satisfy, the {{nyvmcsaprov|Legal Eligibility Requirements}} applicable to the {{nyvmcsaprov|Secured Party}} for all purposes hereunder; provided that, unless otherwise specified in Paragraph {{nyvmcsaprov|13}}, if such date is earlier than the fifth {{nyvmcsaprov|Local Business Day}} following the date on which the {{nyvmcsaprov|Legal Ineligibility Notice}} is delivered, the {{nyvmcsaprov|Total Ineligibility Date}} will be the fifth {{nyvmcsaprov|Local Business Day}} following the date of such delivery.<br> | “'''{{nyvmcsaprov|Total Ineligibility Date}}'''” means the date on which the relevant item of {{nyvmcsaprov|Eligible Credit Support (VM)}} (or a specified amount of such item) has ceased to satisfy, or will cease to satisfy, the {{nyvmcsaprov|Legal Eligibility Requirements}} applicable to the {{nyvmcsaprov|Secured Party}} for all purposes hereunder; provided that, unless otherwise specified in Paragraph {{nyvmcsaprov|13}}, if such date is earlier than the fifth {{nyvmcsaprov|Local Business Day}} following the date on which the {{nyvmcsaprov|Legal Ineligibility Notice}} is delivered, the {{nyvmcsaprov|Total Ineligibility Date}} will be the fifth {{nyvmcsaprov|Local Business Day}} following the date of such delivery.<br> | ||
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then, on such date and in respect of each such {{nyvmcsaprov|Fungible Credit Support Type}}, each party’s obligation to make a {{nyvmcsaprov|Transfer}} of any such {{nyvmcsaprov|Fungible Credit Support Type}} hereunder or under such {{nyvmcsaprov|Other CSA}} will be automatically satisfied and discharged and, if the aggregate amount that would have otherwise been {{nyvmcsaprov|Transfer}}red by one party exceeds the aggregate amount that would have otherwise been {{nyvmcsaprov|Transfer}}red by the other party, replaced by an obligation hereunder or under such {{nyvmcsaprov|Other CSA}}, as applicable, upon the party by which the larger aggregate amount would have been {{nyvmcsaprov|Transfer}}red to {{nyvmcsaprov|Transfer}} to the other party the excess of the larger aggregate amount over the smaller aggregate amount. If a party’s obligation to make a {{nyvmcsaprov|Transfer}} of credit support under this Annex or an {{nyvmcsaprov|Other CSA}} is automatically satisfied and discharged pursuant to this Paragraph 11(j), then, for purposes of this Annex or the {{nyvmcsaprov|Other CSA}}, as applicable, the other party will be deemed to have received credit support of the applicable {{nyvmcsaprov|Fungible Credit Support Type}} in the amount that would otherwise have been required to be {{nyvmcsaprov|Transfer}}red, in each case on the day on which the relevant {{nyvmcsaprov|Transfer}} was due.<br> | then, on such date and in respect of each such {{nyvmcsaprov|Fungible Credit Support Type}}, each party’s obligation to make a {{nyvmcsaprov|Transfer}} of any such {{nyvmcsaprov|Fungible Credit Support Type}} hereunder or under such {{nyvmcsaprov|Other CSA}} will be automatically satisfied and discharged and, if the aggregate amount that would have otherwise been {{nyvmcsaprov|Transfer}}red by one party exceeds the aggregate amount that would have otherwise been {{nyvmcsaprov|Transfer}}red by the other party, replaced by an obligation hereunder or under such {{nyvmcsaprov|Other CSA}}, as applicable, upon the party by which the larger aggregate amount would have been {{nyvmcsaprov|Transfer}}red to {{nyvmcsaprov|Transfer}} to the other party the excess of the larger aggregate amount over the smaller aggregate amount. If a party’s obligation to make a {{nyvmcsaprov|Transfer}} of credit support under this Annex or an {{nyvmcsaprov|Other CSA}} is automatically satisfied and discharged pursuant to this Paragraph 11(j), then, for purposes of this Annex or the {{nyvmcsaprov|Other CSA}}, as applicable, the other party will be deemed to have received credit support of the applicable {{nyvmcsaprov|Fungible Credit Support Type}} in the amount that would otherwise have been required to be {{nyvmcsaprov|Transfer}}red, in each case on the day on which the relevant {{nyvmcsaprov|Transfer}} was due.<br> | ||
Paragraph {{nyvmcsaprov|12}} '''{{nyvmcsaprov|Definitions | Paragraph {{nyvmcsaprov|12}} '''{{nyvmcsaprov|Definitions}}'''<br> | ||
As used in this Annex:—<br> | As used in this Annex:—<br> | ||
“'''{{nyvmcsaprov|Base Currency}}'''” means the currency specified as such in Paragraph {{nyvmcsaprov|13}}.<br> | “'''{{nyvmcsaprov|Base Currency}}'''” means the currency specified as such in Paragraph {{nyvmcsaprov|13}}.<br> | ||
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“'''{{nyvmcsaprov|Delivery Amount Reduction (VM)}}'''” has the meaning specified in Paragraph 6(d)(ii)(A)(II). <br> | “'''{{nyvmcsaprov|Delivery Amount Reduction (VM)}}'''” has the meaning specified in Paragraph 6(d)(ii)(A)(II). <br> | ||
“'''{{nyvmcsaprov|Disputing Party}}'''” has the meaning specified in Paragraph 5.<br> | “'''{{nyvmcsaprov|Disputing Party}}'''” has the meaning specified in Paragraph 5.<br> | ||
“'''{{nyvmcsaprov|Distributions}}'''” means with respect to {{nyvmcsaprov|Posted Collateral (VM)}} other than {{nyvmcsaprov|Cash)}}, all principal, interest and other payments and distributions of {{nyvmcsaprov|Cash)}} or other property with respect thereto, regardless of whether the {{nyvmcsaprov|Secured Party}} has disposed of that {{nyvmcsaprov|Posted Collateral (VM)}} under Paragraph 6(c). {{nyvmcsaprov|Distributions}} will not include any item of property acquired by the {{nyvmcsaprov|Secured Party}} upon any disposition or liquidation of {{nyvmcsaprov|Posted Collateral (VM)}} or, with respect to any {{nyvmcsaprov|Posted Collateral (VM)}} in the form of {{nyvmcsaprov|Cash)}}, any distributions on that collateral, unless otherwise specified herein.<br> | |||
“'''{{nyvmcsaprov|Eligible Collateral (VM)}}'''” has the meaning specified in Paragraph {{nyvmcsaprov|13}}.<br> | “'''{{nyvmcsaprov|Eligible Collateral (VM)}}'''” has the meaning specified in Paragraph {{nyvmcsaprov|13}}.<br> | ||
“'''{{nyvmcsaprov|Eligible Credit Support (VM)}}'''” means {{nyvmcsaprov|Eligible Collateral (VM)}} and {{nyvmcsaprov|Other Eligible Support (VM)}}.<br> | “'''{{nyvmcsaprov|Eligible Credit Support (VM)}}'''” means {{nyvmcsaprov|Eligible Collateral (VM)}} and {{nyvmcsaprov|Other Eligible Support (VM)}}.<br> | ||
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“'''{{nyvmcsaprov|Return Amount (VM)}}'''” has the meaning specified in Paragraph 3(b).<br> | “'''{{nyvmcsaprov|Return Amount (VM)}}'''” has the meaning specified in Paragraph 3(b).<br> | ||
“'''{{nyvmcsaprov|Return Amount Reduction (VM)}}'''” has the meaning specified in Paragraph 6(d)(ii)(A)(II).<br> | “'''{{nyvmcsaprov|Return Amount Reduction (VM)}}'''” has the meaning specified in Paragraph 6(d)(ii)(A)(II).<br> | ||
“'''{{nyvmcsaprov|Secured Party}}'''” means either party, when that party (i) makes a demand for or is entitled to receive {{nyvmcsaprov|Eligible Credit Support (VM)}} under Paragraph 3(a) or (ii) holds or is deemed to hold {{nyvmcsaprov|Posted Credit Support (VM)}}.<br> | “'''{{nyvmcsaprov|Secured Party}}'''” means either party, when that party (i) makes a demand for or is entitled to receive {{nyvmcsaprov|Eligible Credit Support (VM)}} under Paragraph {{nyvmcsaprov|3(a)}} or (ii) holds or is deemed to hold {{nyvmcsaprov|Posted Credit Support (VM)}}.<br> | ||
“'''{{nyvmcsaprov|Set-off}}'''” means {{nyvmcsaprov|Set-off}}, offset, combination of accounts, right of retention or withholding or similar right or requirement (whether arising under this Agreement, another contract, applicable law or otherwise) and, when used as a verb, the exercise of any such right or the imposition of any such requirement.<br> | “'''{{nyvmcsaprov|Set-off}}'''” means {{nyvmcsaprov|Set-off}}, offset, combination of accounts, right of retention or withholding or similar right or requirement (whether arising under this Agreement, another contract, applicable law or otherwise) and, when used as a verb, the exercise of any such right or the imposition of any such requirement.<br> | ||
“'''{{nyvmcsaprov|Specified Condition}}'''” means, with respect to a party, any event specified as such for that party in Paragraph '''{{nyvmcsaprov|13}}'''. <br> | “'''{{nyvmcsaprov|Specified Condition}}'''” means, with respect to a party, any event specified as such for that party in Paragraph '''{{nyvmcsaprov|13}}'''. <br> | ||
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“'''{{nyvmcsaprov|Value}}'''” means for any {{nyvmcsaprov|Valuation Date}} or other date for which {{nyvmcsaprov|Value}} is calculated and subject to Paragraph 5 in the case of a dispute, with respect to:<br> | “'''{{nyvmcsaprov|Value}}'''” means for any {{nyvmcsaprov|Valuation Date}} or other date for which {{nyvmcsaprov|Value}} is calculated and subject to Paragraph 5 in the case of a dispute, with respect to:<br> | ||
:{{nyvmcsaprov|(i)}} {{nyvmcsaprov|Eligible Collateral (VM)}} or {{nyvmcsaprov|Posted Collateral (VM)}} that is:<br> | :{{nyvmcsaprov|(i)}} {{nyvmcsaprov|Eligible Collateral (VM)}} or {{nyvmcsaprov|Posted Collateral (VM)}} that is:<br> | ||
(A) an amount of {{nyvmcsaprov|Cash)}}, the {{nyvmcsaprov|Base Currency Equivalent}} of such amount multiplied by (VP – HFX); and<br> | ::(A) an amount of {{nyvmcsaprov|Cash)}}, the {{nyvmcsaprov|Base Currency Equivalent}} of such amount multiplied by (VP – HFX); and<br> | ||
(B) a security, the {{nyvmcsaprov|Base Currency Equivalent}} of the bid price obtained by the {{nyvmcsaprov|Valuation Agent}} multiplied by (VP – HFX), where:<br> | ::(B) a security, the {{nyvmcsaprov|Base Currency Equivalent}} of the bid price obtained by the {{nyvmcsaprov|Valuation Agent}} multiplied by (VP – HFX), where:<br> | ||
VP equals the applicable Valuation Percentage; and <br> | :::VP equals the applicable Valuation Percentage; and <br> | ||
HFX equals the applicable '''{{nyvmcsaprov|FX Haircut Percentage)}}''';<br> | :::HFX equals the applicable '''{{nyvmcsaprov|FX Haircut Percentage)}}''';<br> | ||
:{{nyvmcsaprov|(ii)}} {{nyvmcsaprov|Posted Collateral (VM)}} that consists of items that are not {{nyvmcsaprov|Eligible Collateral (VM)}} (including any item or any portion of any item that fails to satisfy any (A) {{nyvmcsaprov|Credit Support Eligibility Condition (VM))}} applicable to it or (B) applicable {{nyvmcsaprov|Legal Eligibility Requirements}}), zero; and<br> | :{{nyvmcsaprov|(ii)}} {{nyvmcsaprov|Posted Collateral (VM)}} that consists of items that are not {{nyvmcsaprov|Eligible Collateral (VM)}} (including any item or any portion of any item that fails to satisfy any (A) {{nyvmcsaprov|Credit Support Eligibility Condition (VM))}} applicable to it or (B) applicable {{nyvmcsaprov|Legal Eligibility Requirements}}), zero; and<br> | ||
:{{nyvmcsaprov|(iii)}} {{nyvmcsaprov|Other Eligible Support (VM) and Other Posted Support (VM)}}, as specified in Paragraph {{nyvmcsaprov|13}}.<br> | :{{nyvmcsaprov|(iii)}} {{nyvmcsaprov|Other Eligible Support (VM) and Other Posted Support (VM)}}, as specified in Paragraph {{nyvmcsaprov|13}}.<br> | ||