Article 1. Certain General Definitions
Section 1.1 Credit Derivative Transaction. “Credit Derivative Transaction” means any transaction that is identified in the related Confirmation as a Credit Derivative Transaction or any transaction that incorporates the Definitions.
Section 1.2 Confirmation. “Confirmation” means, with respect to a Credit Derivative Transaction, one or more documents and other confirming evidence exchanged between the parties or otherwise effective which, taken together, confirm or evidence all of the terms of that Credit Derivative Transaction.
Section 1.3 Buyer. “Buyer” means the Fixed Rate Payer.
Section 1.4 Seller. “Seller” means the Floating Rate Payer.
Section 1.5 Calculation Agent. “Calculation Agent” means the party to a Credit Derivative Transaction (or a third party) specified as such in the related Confirmation (or, if a person is not so specified, Seller) who is responsible for making the determinations required to be made by the Calculation Agent under the Credit Derivative Transaction in accordance with the terms of the related Confirmation. Whenever the Calculation Agent is required to act or to exercise judgment, it will do so in good faith and in a commercially reasonable manner. The Calculation Agent shall, as soon as practicable after making any of the required determinations, notify the parties of such determination. Furthermore, each party agrees that the Calculation Agent is not acting as a fiduciary for or as an advisor to such party in respect of its duties as Calculation Agent in connection with any Credit Derivative Transaction.
Section 1.6 Credit Derivatives Determinations Committee. “Credit Derivatives Determinations Committee” means each committee established pursuant to the DC Rules for purposes of reaching certain DC Resolutions in connection with Credit Derivative Transactions .
Section 1.7 DC Rules. “DC Rules” means the Credit Derivatives Determinations Committees Rules, as published by ISDA on its website at www.isda.org (or any successor website thereto) from time to time and as amended from time to time in accordance with the terms thereof.
Section 1.8 ISDA. “ISDA” means the International Swaps and Derivatives Association, Inc.
Section 1.9 DC Secretary. “DC Secretary” has the meaning given to that term in the DC Rules.
Section 1.10 DC Party. “DC Party” has the meaning given to that term in the DC Rules.
Section 1.11 Resolve. “Resolve” has the meaning given to that term in the DC Rules, and “Resolved” and “Resolves” shall be construed accordingly.
Section 1.12 DC Resolution. “DC Resolution” has the meaning given to that term in the DC Rules.
Section 1.13 Trade Date. “Trade Date” means the date on which the parties enter into the Credit Derivative Transaction, as specified in the related Confirmation.
Section 1.14 Scheduled Termination Date. “Scheduled Termination Date” means the date specified as such in the related Confirmation. The Scheduled Termination Date shall not be subject to adjustment in accordance with any Business Day Convention .
Section 1.15 Termination Date. “Termination Date” means either:
- (a) the date as determined in accordance with Section 2.12 ( Reference Obligation Only Trade), 5.1 (Settlement), 6.3 (Auction Settlement Date), 7.2 (Cash Settlement Date), 8.17 (Physical Settlement Date), 9.1 (Partial Cash Settlement Due to Impossibility or Illegality), 9.6(b) (Partial Cash Settlement Terms), 9.10 (Cap on Settlement), or 11.2(c)(ii) (Additional Representations and Agreements for Physical Settlement), as applicable; or
- (b) if none of such Sections is applicable, the later of the final day of (i) the Notice Delivery Period and (ii) the Post Dismissal Additional Period, if any.
Upon the occurrence of a Termination Date, the parties will have no further obligations towards each other in respect of the Credit Derivative Transaction, other than in respect of obligations which have become due on or prior to the Termination Date but have yet to be performed.
Section 1.16 Event Determination Date. “Event Determination Date” means, with respect to a Credit Event and a Credit Derivative Transaction with respect to which:
- (a) “Auction Settlement” is the applicable Settlement Method and “Buyer or Seller” is the Notifying Party:
- (i) subject to Section 1.16(a)(ii), the Notice Delivery Date, if the Notice Delivery Date occurs during either the Notice Delivery Period or the Post Dismissal Additional Period, provided that neither (A) a DC Credit Event Announcementhas occurred nor (B) a DC No Credit Event Announcement has occurred, in each case, with respect to the Credit Event specified in the Credit Event Notice ; or
- (ii) notwithstanding Section 1.16(a)(i), the Credit Event Resolution Request Date, if a DC Credit Event Announcementhas occurred, the Credit Event Resolution Request Date has occurred on or prior to the last day of the Notice Delivery Period (including prior to the Trade Date) and either:
- (A)
- (I) the Credit Event is not an M(M)R Restructuring; and
- (II) the Trade Date occurs on or prior to a DC Announcement Coverage Cut-off Date; or
- (B)
- (I) the Credit Event is an M(M)R Restructuring; and
- (II) a Credit Event Notice is delivered by a Notifying Party to the other party and is effective on or prior to the Exercise Cut-off Date,
- provided that:
- (x) no Physical Settlement Date, if applicable, or Termination Date has occurred on or prior to the date on which the DC Credit Event Meeting Announcement occurs;
- (y) if any Valuation Date or Delivery Date, as applicable, has occurred on or prior to the date on which the DC Credit Event Meeting Announcement occurs, an Event Determination Dateshall be deemed to have occurred only with respect to the portion of the Floating Rate Payer Calculation Amount, if any, with respect to which no Valuation Date or Delivery Date, as applicable, has occurred; and
- (z) no Credit Event Notice specifying an M(M)R Restructuring} as the only Credit Event has previously been delivered to Seller by Buyer as Notifying Party , (aa) unless the M(M)R Restructuring} specified in such Credit Event Notice is also the subject of the DC Credit Event Question resulting in the occurrence of the Credit Event Resolution Request Date, (bb) unless, and to the extent that, the Exercise Amount specified in such Credit Event Notice was less than the Floating Rate Payer Calculation Amount, or (cc) unless the Credit Derivative Transaction is an Auction Covered Transaction and the Deliverable Obligations set out on the Final List are identical to the Permissible Deliverable Obligations for such Credit Derivative Transaction, or
- (b) Section 1.16(a) does not apply, the Non-Standard Event Determination Date determined in accordance with Section 14.1 ( Non-Standard Event Determination Date).
Section 1.17 DC Announcement Coverage Cut-off Date. “DC Announcement Coverage Cut-off Date” means, with respect to a DC Credit Event Announcement, the Auction Final Price Determination Date, the Auction Cancellation Date, or the date that is fourteen calendar days following the No Auction Announcement Date, if any, as applicable.
Section 1.18 Different Event Determination Dates. If different Event Determination Dates have been determined with respect to different portions of the Floating Rate Payer Calculation Amount or an Event Determination Datehas been determined with respect to only a portion of the Floating Rate Payer Calculation Amount, the rights and obligations of the parties shall, with effect from each such Event Determination Date, be construed as if the parties had entered into a separate Credit Derivative Transaction with respect to each such portion with such modifications as the Calculation Agent (in consultation with the parties) shall determine are required in order to preserve the economic effects of the two Credit Derivative Transactions considered in aggregate.
Section 1.19 No Event Determination Date. Subject to Section 10.2(a)(i)(III) (Effect of DC Resolutions), no Event Determination Datewill occur with respect to an event, and any Event Determination Datepreviously determined with respect to an event shall be deemed not to have occurred, if, or to the extent that, prior to the Auction Final Price Determination Date, a Valuation Date, the Physical Settlement Date (or, if earlier, a Delivery Date), or the Termination Date, as applicable, a DC No Credit Event Announcement occurs with respect to such event.
Section 1.20 Adjustment Payments. If, in accordance with Section 1.16 (Event Determination Date) or 1.19 (No Event Determination Date), (a) following the determination of an Event Determination Date, such Event Determination Dateis deemed either to have occurred on a date that is different from the date that was originally determined to be the Event Determination Dateor not to have occurred, or (b) an Event Determination Dateis deemed to have occurred prior to a preceding Fixed Rate Payer Payment Date, the Calculation Agent will determine (i) the adjustment payment, if any, that is payable to reflect any change that may be necessary to the Fixed Amounts previously calculated and/or paid in respect of the Credit Derivative Transaction, (ii) the date on which any such adjustment payment is payable and (iii) the party to the Credit Derivative Transaction that is obliged to make any such adjustment payment. For the avoidance of doubt, no accruals of interest shall be taken into account when calculating any such adjustment payment.
Section 1.21 Notifying Party. “Notifying Party” means “Buyer or Seller”, unless otherwise specified in the related Confirmation.
Section 1.22 Notice Delivery Date. “Notice Delivery Date” means the first date on which both an effective Credit Event Notice and, unless “Notice of Publicly Available Information” is specified as not applicable in the related Confirmation, an effective Notice of Publicly Available Information, have been delivered by a Notifying Party to the other party.
Section 1.23 Notice Delivery Period. “Notice Delivery Period” means the period from and including the Trade Date to and including the date that is fourteen calendar days after the Extension Date.
Section 1.24 Post Dismissal Additional Period. “Post Dismissal Additional Period” means the period from and including the date of the DC Credit Event Question Dismissal to and including the date that is fourteen calendar days thereafter (provided that the relevant Credit Event Resolution Request Date occurred on or prior to the end of the last day of the Notice Delivery Period (including prior to the Trade Date)).
Section 1.25 DC Credit Event Meeting Announcement. “DC Credit Event Meeting Announcement” means, with respect to the Reference Entity, a public announcement by the DC Secretary that a Credit Derivatives Determinations Committee will be convened to Resolve the matters described in a DC Credit Event Question.
Section 1.26 DC Credit Event Question. “DC Credit Event Question” means a notice to the DC Secretary requesting that a Credit Derivatives Determinations Committee be convened to Resolve whether an event that constitutes a Credit Event for purposes of the Credit Derivative Transaction has occurred.
Section 1.27 DC Credit Event Question Dismissal. “DC Credit Event Question Dismissal” means, with respect to the Reference Entity, a public announcement by the DC Secretary that the relevant Credit Derivatives Determinations Committee has Resolved not to determine the matters described in a DC Credit Event Question.
Section 1.28 DC Credit Event Announcement. “DC Credit Event Announcement” means, with respect to the Reference Entity, a public announcement by the DC Secretary that the relevant Credit Derivatives Determinations Committee has Resolved that an event that constitutes a Credit Event for purposes of the Credit Derivative Transaction has occurred on or after the Credit Event Backstop Date and on or prior to the Extension Date, provided that if the Credit Event occurred after the Scheduled Termination Date, the DC Credit Event Announcementmust relate to the relevant Potential Failure to Pay, in the case of a Grace Period Extension Date, or the relevant Potential Repudiation/Moratorium, in the case of a Repudiation/Moratorium Evaluation Date.
Section 1.29 DC No Credit Event Announcement. “DC No Credit Event Announcement” means, with respect to the Reference Entity, a public announcement by the DC Secretary that the relevant Credit Derivatives Determinations Committee has Resolved that an event that is the subject of a DC Credit Event Question does not constitute a Credit Event for purposes of the Credit Derivative Transaction.
Section 1.30 Credit Event Resolution Request Date. “Credit Event Resolution Request Date” means, with respect to a DC Credit Event Question, the date as publicly announced by the DC Secretary that the relevant Credit Derivatives Determinations Committee Resolves to be the date on which the DC Credit Event Question was effective and on which the relevant Credit Derivatives Determinations Committee was in possession of Publicly Available Information with respect to such DC Credit Event Question.
Section 1.31 M(M)R Restructuring. “M(M)R Restructuring” means a Restructuring Credit Event in respect of which either “Mod R” or “Mod Mod R” is specified as applicable in the related Confirmation.
Section 1.32 Credit Event Notice. “Credit Event Notice” means an irrevocable notice from a Notifying Party to the other party that describes a Credit Event that occurred on or after the Credit Event Backstop Date and on or prior to the Extension Date.
Any Credit Event Notice that describes a Credit Event that occurred after the Scheduled Termination Date must relate to the relevant Potential Failure to Pay, in the case of a Grace Period Extension Date, or the relevant Potential Repudiation/Moratorium, in the case of a Repudiation/Moratorium Evaluation Date. A Credit Event Notice that describes a Credit Event other than an M(M)R Restructuring} must be in respect of the full Floating Rate Payer Calculation Amount. A Credit Event Notice must contain a description in reasonable detail of the facts relevant to the determination that a Credit Event has occurred. The Credit Event that is the subject of the Credit Event Notice need not be continuing on the date the Credit Event Notice is effective. A form of Credit Event Notice is set forth in Exhibit B.
Section 1.33 Credit Event Notice after M(M)R Restructuring. Upon the occurrence of an M(M)R Restructuring:
- (a) a Notifying Party may deliver multiple Credit Event Notices with respect to such M(M)R Restructuring, each such Credit Event Notice setting forth the amount of the Floating Rate Payer Calculation Amount to which such Credit Event Notice applies (the “Exercise Amount”), provided that if the Credit Event Notice does not specify an Exercise Amount, the full Floating Rate Payer Calculation Amount will be deemed to have been specified as the Exercise Amount;
- (b) if the Notifying Party has delivered a Credit Event Notice that specifies an Exercise Amount that is less than the Floating Rate Payer Calculation Amount, the rights and obligations of the parties shall, with effect from the date such Credit Event Notice is effective, be construed as if the parties had entered into two Credit Derivative Transactions, one of which has a Floating Rate Payer Calculation Amount equal to the Exercise Amount and, upon the occurrence of an Event Determination Date, will be settled in accordance with the applicable Settlement Method or Fallback Settlement Method, as applicable, and the other of which will have a Floating Rate Payer Calculation Amount equal to the Floating Rate Payer Calculation Amount outstanding prior to such Credit Event Notice minus the Exercise Amount and will continue in effect with such modifications as the Calculation Agent (in consultation with the parties) shall determine are required in order to preserve the economic effects of the two Credit Derivative Transactions (considered in aggregate); and
- (c) the Exercise Amount in connection with a Credit Event Notice describing an M(M)R Restructuring} must be an amount that is at least 1,000,000 units of the currency (or, if Japanese Yen, 100,000,000 units) in which the Floating Rate Payer Calculation Amount is denominated and an integral multiple thereof or the entire Floating Rate Payer Calculation Amount.
Section 1.34 Notice of Publicly Available Information. “Notice of Publicly Available Information” means an irrevocable notice from the Notifying Party to the other party that cites Publicly Available Information confirming the occurrence of the Credit Event or Potential Repudiation/Moratorium, as applicable, described in the Credit Event Notice or Repudiation/Moratorium Extension Notice. The notice given must contain a copy, or a description in reasonable detail, of the relevant Publicly Available Information. If “Notice of Publicly Available Information” is applicable to a Credit Derivative Transaction and the Credit Event Notice or Repudiation/Moratorium Extension Notice, as applicable, contains Publicly Available Information, such Credit Event Notice or Repudiation/Moratorium Extension Notice will also be deemed to be a Notice of Publicly Available Information. A form of Notice of Publicly Available Information (which may be a part of the form of Credit Event Notice or Repudiation/Moratorium Extension Notice) is set forth in Exhibits B and D.
Section 1.35 Publicly Available Information.
- (a) “Publicly Available Information” means information that reasonably confirms any of the facts relevant to the determination that the Credit Event or Potential Repudiation/Moratorium, as applicable, described in a Credit Event Notice or Repudiation/Moratorium Extension Notice have occurred and which:
- (i) has been published in or on not less than the Specified Number of Public Sources (regardless of whether the reader or user thereof pays a fee to obtain such information);
- (ii) is information received from or published by (A) the Reference Entity (or, if the Reference Entity is a Sovereign, any agency, instrumentality, ministry, department or other authority thereof acting in a governmental capacity (including, without limiting the foregoing, the central bank) of such Sovereign), or (B) a trustee, fiscal agent, administrative agent, clearing agent, paying agent, facility agent or agent bank for an Obligation; or
- (iii) is information contained in any order, decree, notice, petition or filing, however described, of or filed with a court, tribunal, exchange, regulatory authority or similar administrative, regulatory or judicial body,
- provided that where any information of the type described in Sections 1.35(a)(ii) or (iii) is not publicly available, it can only constitute Publicly Available Information if it can be made public without violating any law, agreement, understanding or other restriction regarding the confidentiality of such information.
- (b) In relation to any information of the type described in Sections 1.35(a)(ii) or (iii), the party receiving such information may assume that such information has been disclosed to it without violating any law, agreement, understanding or other restriction regarding the confidentiality of such information and that the party delivering such information has not taken any action or entered into any agreement or understanding with the Reference Entity or any Affiliate of the Reference Entity that would be breached by, or would prevent, the disclosure of such information to the party receiving such information.
- (c) Without limitation, Publicly Available Information need not state (i) in relation to Section 3.28 (Downstream Affiliate), the percentage of Voting Shares owned by the Reference Entity and (ii) that the relevant occurrence (A) has met the Payment Requirement or Default Requirement, (B) is the result of exceeding any applicable Grace Period, or (C) has met the subjective criteria specified in certain Credit Events.
- (d) In relation to a Repudiation/Moratorium Credit Event, Publicly Available Information must relate to the events described in both Sections 4.6(a)(i) and (ii) (Repudiation/Moratorium).
Section 1.36 Public Source. “Public Source” means each source of Publicly Available Information specified as such in the related Confirmation (or, if no such source is specified, each of Bloomberg , Reuters, Dow Jones Newswires, The Wall Street Journal, The New York Times, Nihon Keizai Shimbun, Asahi Shimbun, Yomiuri Shimbun, Financial Times, La Tribune, Les Echos, The Australian Financial Review and Debtwire (and successor publications), the main source(s) of business news in the country in which the Reference Entity is organized and any other internationally recognized published or electronically displayed news sources).
Section 1.37 Specified Number. “Specified Number” means the number of Public Sources specified in the related Confirmation (or, if no such number is specified, two).
Section 1.38 Requirements Regarding Notices.
- (a) Any notice or other communication given by one party to any other party must be in writing (including by facsimile or email) or by telephone, and will be subject to the requirements set forth in Section 1.38.
- (b) A notice delivered on or prior to 4:00 p.m. (Calculation Agent City time) on a Calculation Agent City Business Day will be effective on such Calculation Agent City Business Day. A notice delivered after 4:00 p.m. (Calculation Agent City time) on a Calculation Agent City Business Day will be deemed effective on the next following Calculation Agent City Business Day, regardless of the form in which it is delivered.
- (c) For purposes of Section 1.38(b), a notice given by telephone will be deemed to have been delivered at the time the telephone conversation takes place. If the notice is delivered by telephone, a written Confirmation of such notice will be executed and delivered confirming the substance of such notice within one Calculation Agent City Business Day of such notice. Failure to provide a written Confirmation shall not affect the effectiveness of a notice given by telephone.
- (d) If the Calculation Agent is not a party to the Credit Derivative Transaction, any notice required to be delivered by a party to the other party shall also be delivered to the Calculation Agent . Failure to deliver a notice to the Calculation Agent in such circumstances shall not affect the effectiveness of a notice delivered to the other party.
Section 1.39 Credit Event Backstop Date. “Credit Event Backstop Date” means (a) for purposes of any event that constitutes a Credit Event for purposes of the Credit Derivative Transaction (or with respect to a Repudiation/Moratorium, if applicable, the event described in Section 4.6(a)(ii) (Repudiation/Moratorium)), as determined by DC Resolution, the date that is sixty calendar days prior to the Credit Event Resolution Request Date, or (b) otherwise, the date that is sixty calendar days prior to the earlier of (i) the Notice Delivery Date, if the Notice Delivery Date occurs during the Notice Delivery Period and (ii) the Credit Event Resolution Request Date, if the Notice Delivery Date occurs during the Post Dismissal Additional Period. The Credit Event Backstop Date shall not be subject to adjustment in accordance with any Business Day Convention.
Section 1.40 Extension Date. “Extension Date” means the latest of (a) the Scheduled Termination Date, (b) the Grace Period Extension Date if (i) “Failure to Pay” and “Grace Period Extension” are specified as applicable in the related Confirmation and (ii) the Potential Failure to Pay with respect to the relevant Failure to Pay occurs on or prior to the Scheduled Termination Date and ( c) the Repudiation/Moratorium Evaluation Date (if any) if “Repudiation/Moratorium” is specified as applicable in the related Confirmation, as applicable.
Section 1.41 Exercise Cut-off Date. “Exercise Cut-off Date” means either:
- (a) with respect to an M(M)R Restructuring} and a Credit Derivative Transaction to which Section 1.16(a) (Event Determination Date) applies:
- (i) if the DC Secretary publishes a Final List applicable to the Transaction Auction Settlement Terms and/or Parallel Auction Settlement Terms, the date that is (A) two Relevant City Business Days, if the Credit Event Notice is delivered by Seller, or (B) five Relevant City Business Days, if the Credit Event Notice is delivered by Buyer, in each case following the date on which such Final List is published; provided that if Seller delivers a Credit Event Notice on or prior to the Exercise Cut-off Date applicable to Seller and Buyer delivers a Credit Event Notice on or prior to the Exercise Cut-off Date applicable to Buyer, the Credit Event Notice delivered by Seller on or prior to the Exercise Cut-off Date applicable to Seller shall prevail; or
- (ii) otherwise, the date that is fourteen calendar days following the relevant No Auction Announcement Date; or
- (b) with respect to a Credit Event and a Credit Derivative Transaction to which Section 1.16(a) (Event Determination Date) does not apply, the Non-Standard Exercise Cut-off Datedetermined in accordance with Section 14.2 (Non-Standard Exercise Cut-off Date);
or, in each case, such other date as the relevant Credit Derivatives Determinations Committee Resolves.
Section 1.42 Relevant City Business Day. “Relevant City Business Day” has the meaning given to that term in the DC Rules.
Section 1.43 Calculation Agent City. “Calculation Agent City” means the city specified as such in the related Confirmation or, if a city is not so specified, the city in which the office through which the Calculation Agent is acting for purposes of the Credit Derivative Transaction is located.
Section 1.44 Calculation Agent City Business Day. “Calculation Agent City Business Day” means a day on which commercial banks and foreign exchange markets are generally open to settle payments in the Calculation Agent City.
Section 1.45 Grace Period Extension Date. “Grace Period Extension Date” means, if (a) “Grace Period Extension” is specified as applicable in the related Confirmation and (b) a Potential Failure to Pay occurs on or prior to the Scheduled Termination Date , the date that is the number of days in the Grace Period after the date of such Potential Failure to Pay. If “Grace Period Extension” is not specified as applicable in the related Confirmation, Grace Period Extension shall not apply to the relevant Credit Derivative Transaction.
Section 1.46 Grace Period. “Grace Period” means:
- (a) subject to Sections 1.46(b) and (c), the applicable grace period with respect to payments under and in accordance with the terms of such Obligation in effect as of the date as of which such Obligation is issued or incurred;
- (b) if “Grace Period Extension” is specified as applicable in the related Confirmation, a Potential Failure to Pay has occurred on or prior to the Scheduled Termination Date and the applicable grace period cannot, by its terms, expire on or prior to the Scheduled Termination Date , the Grace Periodwill be deemed to be the lesser of such grace period and the period specified as such in the related Confirmation or, if no period is specified, thirty calendar days; and
- (c) if, as of the date as of which an Obligation is issued or incurred, no grace period with respect to payments or a grace period with respect to payments of less than three Grace Period Business Days is applicable under the terms of such Obligation, a Grace Periodof three Grace Period Business Days shall be deemed to apply to such Obligation; provided that, unless “Grace Period Extension” is specified as applicable in the related Confirmation, such deemed Grace Periodshall expire no later than the Scheduled Termination Date.
Section 1.47 Grace Period Business Day. “Grace Period Business Day” means a day on which commercial banks and foreign exchange markets are generally open to settle payments in the place or places and on the days specified for that purpose in the relevant Obligation or, if a place or places are not so specified, (a) if the Obligation Currency is the euro, a TARGET Settlement Day, or (b) otherwise, a day on which commercial banks and foreign exchange markets are generally open to settle payments in the principal financial city in the jurisdiction of the Obligation Currency.
Section 1.48 Potential Failure to Pay. “Potential Failure to Pay” means the failure by the Reference Entity to make, when and where due, any payments in an aggregate amount of not less than the Payment Requirement under one or more Obligations in accordance with the terms of such Obligations at the time of such failure, without regard to any grace period or any conditions precedent to the commencement of any grace period applicable to such Obligations.
Section 1.49 Provisions Relating to Timing. Subject to Sections 1.38 (Requirements Regarding Notices) and 1.50 (Payment Timing), in order to determine the day on which an event occurs for purposes of the Definitions, the demarcation of days shall be made by reference to Greenwich Mean Time (or, if the Transaction Type of the Reference Entity relates to Japan, Tokyo time), irrespective of the time zone in which such event occurred. Any event occurring at midnight shall be deemed to have occurred immediately prior to midnight.
Section 1.50 Payment Timing. Notwithstanding Sections 1.32 (Credit Event Notice) and 1.49 (Provisions Relating to Timing), if a payment is not made by the Reference Entity on its due date or, as the case may be, on the final day of the relevant Grace Period, then such failure to make a payment shall be deemed to have occurred on such day prior to midnight Greenwich Mean Time (or, if the Transaction Type of the Reference Entity relates to Japan, Tokyo time), irrespective of the time zone of its place of payment.
Section 1.51 Business Day. “Business Day” means (a)(i) a day on which commercial banks and foreign exchange markets are generally open to settle payments in the place or places and on the days specified for that purpose in the relevant Confirmation, and/or (ii) a TARGET Settlement Day (if “TARGET” or “TARGET Settlement Day” is specified in the related Confirmation), or (b) if a place or places or such terms are not so specified, (i) if the Floating Rate Payer Calculation Amount is denominated in the euro, a TARGET Settlement Day, or (ii) otherwise, a day on which commercial banks and foreign exchange markets are generally open to settle payments in the principal financial city in the jurisdiction of the currency of denomination of the Floating Rate Payer Calculation Amount.
Section 1.52 TARGET Settlement Day. “TARGET Settlement Day” means any day on which TARGET2 (the Trans-European Automated Real-time Gross settlement Express Transfer system) is open.
Section 1.53 Business Day Convention.
- (a) “Business Day Convention” means the convention for adjusting any relevant date if it would otherwise fall on a day that is not a Business Day. The following terms, when used in conjunction with the term “Business Day Convention” and a date, shall mean that an adjustment will be made if that date would otherwise fall on a day that is not a Business Day so that:
- (i) if “Following” is specified as applicable in the related Confirmation, that date will be the first following day that is a Business Day;
- (ii) if “Modified Following” or “Modified” is specified as applicable in the related Confirmation, that date will be the first following day that is a Business Day unless that day falls in the next calendar month, in which case that date will be the first preceding day that is a Business Day; and
- (iii) if “Preceding” is specified as applicable in the related Confirmation, that date will be the first preceding day that is a Business Day.
- (b) Subject to Sections 1.14 (Scheduled Termination Date), 1.39 (Credit Event Backstop Date), 2.2(k) (Provisions for Determining a Successor), 3.33(a) (General Terms Relating to Mod R and Mod Mod R) and 12.10 (Effective Date), the Business Day Convention applicable to a date that is specified in the relevant Confirmation to be subject to adjustment in accordance with an applicable Business Day Convention shall be the Business Day Convention specified for that date in that Confirmation or, if a Business Day Convention is not so specified for that date but a Business Day Convention is generally otherwise specified in that Confirmation, the Business Day Convention shall be the Business Day Convention so specified in such Confirmation and, if a Business Day Convention is not specified for that date or generally in that Confirmation, the Following Business Day Convention shall apply to that date.
- (c) If the last day of any period calculated by reference to calendar days falls on a day that is not a Business Day, such last day shall be subject to adjustment in accordance with the applicable Business Day Convention; provided that if the last day of any period is the Credit Event Backstop Date or the Successor Backstop Date, such last day shall not be subject to any adjustment in accordance with any Business Day Convention.
Section 1.54 Final List. “Final List” has the meaning given to that term in the DC Rules.
Section 1.55. 2002 ISDA Master Agreement. The terms “ Additional Termination Event”, “ Affected Party”, “ Affected Transaction”, “ Affiliate”, “ Close-out Amount”, “ Stamp Tax” and “ Tax” shall have the meanings given to those terms in the standard form 2002 ISDA Master Agreement (the “ 2002 ISDA Master Agreement”).
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