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| {{fullanat2|isda|6(a)|1992|6(a)|2002}}{{isdaprov|Automatic Early Termination}} is a concept which exists in Section {{isdaprov|6(a)}} {{isdaprov|Right to Terminate Following Event of Default}} of the {{isdama}}. As is so much in the {{isdama}}, it’s all about '''[[Netting]]'''. | | {{nman|isda|2002|Automatic Early Termination}} |
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| {{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.
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| 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 {{tag|bankruptcy}} events, for reasons that will become clear below.
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| {{automaticearlytermination}}
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| ===[[AET]] under the {{1987ma}}===
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| 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.
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| {{seealso}}
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| *{{isdaprov|Right to Terminate Following Event of Default}}
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