2016 ISDA VM NY CSA nutshell

6. Holding and Using Posted Collateral (VM)

Template:Nutshell 2016 NY CSA 6(a) Template:Nutshell 2016 NY CSA 6(b) 6(c) Use of Posted Collateral (VM). Unless otherwise agreed specified in Paragraph 13 and without limiting the parties’ rights and obligations (especially remedies under Paragraph 8), while the Secured Party is not effectively in default, it may, notwithstanding Section 9-207 of the Uniform Commercial Code;

6(c)(i) Rehypothecate: rehypothecate, sell outright or otherwise deal with any Posted Collateral (VM) it holds absolutely; and

6(c)(ii) Register: register Posted Collateral (VM) in its own or its Custodian (VM)’s name.

References to Transfering Eligible Credit Support (VM) or Posted Credit Support (VM) under this 2016 NY Law VM CSA will be construed to apply as if the Secured Party still holds all Posted Collateral (VM) even where in fact it doesn’t.
Template:Nutshell 2016 NY CSA 6(d)

Paragraph 7 Events of Default

Under Section 5(a)(iii)(1), it will be an Event of Default for a party if:

7(i) Fails to Transfer Collateral: it (or its Custodian (VM)) fails to Transfer any Eligible Collateral (VM), Posted Collateral (VM) or the Interest Payment (VM) when due and that failure continues for two Local Business Days after it receives notice of that failure;

7(ii) Impermissible dealing: it continuously fails to comply with any restriction in this Annex on its rights to rehypothecate or take title to Posted Collateral under Paragraph 6(c) for five Local Business Days after it receives notice of that failure; or

7(iii) Other breach of Annex: it continuously breaches any other obligation under this Annex for 30 days after it receives notice of its breach.

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.

11. Miscellaneous

Template:Nutshell 2016 NY CSA 11(a) Template:Nutshell 2016 NY CSA 11(b) Template:Nutshell 2016 NY CSA 11(c) 11(d) Good Faith and Commercially Reasonable Manner. The parties must perform all obligations under this Annex, in good faith and in a commercially reasonable manner.
Template:Nutshell 2016 NY CSA 11(e) 11(f) Specifications of Certain Matters. If this Annex says something can be “specified in Paragraph 11”, you can specify it in a Confirmation or other document between the parties, too.
Template:Nutshell 2016 NY CSA 11(g) Template:Nutshell 2016 NY CSA 11(h) Template:Nutshell 2016 NY CSA 11(i) Template:Nutshell 2016 NY CSA 11(j) Template:Nutshell 2016 NY CSA 12 Template:Nutshell 2016 NY CSA 13