|
|
| (15 intermediate revisions by the same user not shown) |
| Line 1: |
Line 1: |
| {{fullanat2|isda|6(a)|1992|6(a)|2002}}Automatic Early Termination is a concept which exists in Section {{isdaprov|6(a)}} {{isdaprov|Right to Terminate Following Event of Default}} of the {{isdama}}. it is relevant to [[Netting]]. | | {{nman|isda|2002|Automatic Early Termination}} |
| | |
| ===AET under the {{1987ma}}===
| |
| Note the somewhat difficult position for AET under the {{1987ma}} - a fuller discussion at that article - which was part of the reason for the move to the {{1992ma}} in the first place.
| |
| | |
| ==Analysis==
| |
| Note that {{isdaprov|AET}} is only triggered by certain events under the {{isdaprov|Bankruptcy}} [[Events of Default - ISDA Provision|event of default]], and isn't triggered by {{isdaprov|Cross Default}} for example.
| |
| | |
| It only applies to formal {{isdaprov|bankruptcy}} events in the jurisdiction, not “catastrophic credit events that are effectively as good bankruptcy” but which don't amount to formal bankruptcy events, for reasons that will become clear below.
| |
| | |
| {{automaticearlytermination}}
| |
| {{seealso}}
| |
| *{{isdaprov|Right to Terminate Following Event of Default}}
| |