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| {{isdaanat|6(a)}} | | {{nman|isda|2002|Automatic Early Termination}} |
| {{isdaprov|Automatic Early Termination}} is an odd and misunderstood 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]]'''. Where a jurisdiction suspends terms of contracts in a period of formal insolvency, the idea is to have the ISDA break before that suspension kicks in — so close-out netting works.
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| {{isdaprov|AET}} is thus only triggered by ''certain'' events under the {{isdaprov|Bankruptcy}} [[Events of Default - ISDA Provision|event of default]] — formal bankruptcy procedures — and not by economic events that tend to indicate insolvency (such as an inability to pay debts as they fall due, [[technical insolvency]] or the exercise of security. Nor does it apply to other Events of Default.
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| ===Switzlerland===
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| Switzerland is — isn’t it always? — different, and a good place to go right now would be the [[Swiss bankruptcy language]] page. Switzerland itself is also a good place to go, especially in the skiing season. The [[JC]] loves Wengen.
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| {{automaticearlytermination}}
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| ===[[AET]] under the {{1987ma}}===
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| Note the somewhat difficult position for {{tag|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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| {{sa}}
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| *{{isdaprov|Right to Terminate Following Event of Default}}
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| *[[Swiss bankruptcy language]]
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