Conditions Precedent - 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 4(a) in a Nutshell™ Use at your own risk, campers! 4(a) Conditions Precedent. The Chargor’s obligations to transfer under Paragraphs 3 and 5 and the Secured Party’s obligations to instruct transfers under Paragraphs 3, 4(e)(iii), 5 and the provisions requiring the return of zero-Valued Posted Credit Support (IM) are subject to the conditions precedent that: (i) There is no live Event of Default, Potential Event of Default or Specified Condition for the other party; and (ii) No Early Termination Date has been designated for all Covered Transactions (IM) which has not been fully satisfied. view template Full text of Paragraph 4(a) 4(a) Conditions Precedent. Unless otherwise specified in Paragraph 13, each obligation of the Chargor to make a transfer under Paragraphs 3 and 5 and of the Secured Party to instruct the Custodian (IM) to make a transfer under Paragraphs 3, 4(e)(iii), 5 and the provisions of Paragraph 13 relating to the return of Posted Credit Support (IM) with a Value of zero is subject to the conditions precedent that: (i) no Event of Default, Potential Event of Default or Specified Condition has occurred and is continuing with respect to the other party; and (ii) no Early Termination Date has occurred or been designated for which any unsatisfied payment obligations (whether present, actual, future or contingent) exist which is in respect of all Covered Transactions (IM). view template Related agreements and comparisons Related Agreements Click here for the text of Section 3(a) in the 2016 ISDA VM CSA Comparisons Template:Csddiff 4(a) Comments? Questions? Suggestions? Requests? Insults? We’d love to 📧 hear from you. Sign up for our newsletter.

Content and comparisons

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Summary

Not entirely clear that it should relate to ineligible Credit Support (that hence has a Value of zero), since it doesn’t count numerically into the Value of the Posted Credit Support (IM) (this is the 2018 English law IM CSD’s ungainly description of what we used to call a “Credit Support Balance” — but on the other hand the argument is “well, you are going tetas arriba so frankly anything of yours that I hold I’m damn well keeping and selling for anything I can get for it.”

The latter argument, we fancy, will prevail.

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General discussion

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See also

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