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Borrowed money: Difference between revisions
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"'''Borrowed money'''" is a term of art used in financial contracts | "'''Borrowed money'''" - also known as [[indebtedness]] - is a term of art used in financial contracts. It is a key part of the definition of {{isdaprov|Specified Indebtedness}} in the {{isdama}}, which in turn is a key part of the definition of {{isdaprov|Cross Default}}. | ||
Borrowed Money is the main difference in scope between {{isdaprov|Cross Default}} and {{isdaprov|Default under Specified Transaction}} - the former includes it, the latter (unless you monkey around with your definition) does not. | |||
==Scope of | ==Scope of borrowed money== | ||
Borrowed money is not generally defined. You know it when you see it. Quoth that sage old ''eminence gris'' Simon Firth, in his book [http://www.amazon.co.uk/Derivatives-Law-Practice-Simon-Firth/dp/0421830204 Derivatives Law and Practice]: | |||
Quoth Simon Firth, in his book [http://www.amazon.co.uk/Derivatives-Law-Practice-Simon-Firth/dp/0421830204 Derivatives Law and Practice]: | |||
{{box|"'''Borrowed money'''" is not defined but it means money which has been paid on the basis that it is to be repaid at a future date. It therefore excludes amounts that are due to ordinary trade creditors and financing arrangements (such as [[repo]]s and the discounting of bills of exchange).}} | {{box|"'''Borrowed money'''" is not defined but it means money which has been paid on the basis that it is to be repaid at a future date. It therefore excludes amounts that are due to ordinary trade creditors and financing arrangements (such as [[repo]]s and the discounting of bills of exchange).}} | ||