Transfer of Title, No Security Interest, Distributions and Interest Amount - CSA Provision

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CSA Anatomy


In a NutshellTM Section 5:

5 Title Transfer etc
5(a) Transfer of Title. All right, title and interest to any Eligible Credit Support, Equivalent Credit Support, Equivalent Distributions or Interest Amount transferred under this Annex will vest in the recipient free of any encumbrances or other interests (other than usual clearing system liens).
Template:Nutshell 1995 CSA 5(b) 5(c) Distributions and Interest Amount
5(c)(i) Distributions. To the extent it would not create a Delivery Amount, the Transferee will transfer Equivalent Distributions to the Transferor by the Settlement Day following each Distributions Date as calculated by the Valuation Agent. Such a calculation date will be treateds as a Valuation Date.
5(c)(ii) Interest Amount. To the extent it would not create a Delivery Amount the Transferee will transfer Interest Amounts to the Transferor as required by Paragraph 11(f)(ii) as calculated by the Valuation Agent. The calculation date will be treated as a Valuation Date.
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1995 ISDA CSA full text of Section 5:

Paragraph 5. Transfer of Title, No Security Interest, Distributions and Interest Amount
5(a) Transfer of Title. Each party agrees that all right, title and interest in and to any Eligible Credit Support, Equivalent Credit Support, Equivalent Distributions or Interest Amount which it transfers to the other party under the terms of this Annex shall vest in the recipient free and clear of any liens, claims, charges or encumbrances or any other interest of the transferring party or of any third person (other than a lien routinely imposed on all securities in a relevant clearance system).
5(b) No Security Interest. Nothing in this Annex is intended to create or does create in favour of either party any mortgage, charge, lien, pledge, encumbrance or other security interest in any cash or other property transferred by one party to the other party under the terms of this Annex.
5(c) Distributions and Interest Amount.

5(c)(i) Distributions. The Transferee will transfer to the Transferor not later than the Settlement Day following each Distributions Date cash, securities or other property of the same type, nominal value, description and amount as the relevant Distributions (“Equivalent Distributions”) to the extent that a Delivery Amount would not be created or increased by the transfer, as calculated by the Valuation Agent (and the date of calculation will be deemed a Valuation Date for this purpose).
5(c)(ii) Interest Amount. Unless otherwise specified in Paragraph 11(f)(iii), the Transferee will transfer to the Transferor at the times specified in Paragraph 11(f)(ii) the relevant Interest Amount to the extent that a Delivery Amount would not be created or increased by the transfer, as calculated by the Valuation Agent (and the date of calculation will be deemed a Valuation Date for this purpose).

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Related Agreements
Click here for the text of Section 5 in the 1995 English Law CSA
Click here for the text of Section 5 in the 2016 English Law VM CSA
Click [[{{{3}}} - NY VM CSA Provision|here]] for the text of the equivalent, Section [[{{{3}}} - NY VM CSA Provision|{{{3}}}]] in the 2016 NY Law VM CSA
Comparisons
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Resources Full wikitext | Nutshell wikitext
Navigation 1 (Interpretation) | 2 (Credit Support Obligations) | 3 (Transfers, Calculations and Exchanges) | 4 (Dispute Resolution) | 5 (Title Transfer etc) | 6 (Default) | 7 (Representation) | 8 (Expenses) | 9 (Miscellaneous) | 10 (Definitions) | 11 (Elections and Variables)

Paragraph 5 Transfer of Title, No Security Interest, Distributions and Interest Amount

Paragraph 5(a) Transfer of Title
Paragraph 5(b) No Security Interest
Paragraph 5(c) Distributions and Interest Amount