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| ==[[1992 ISDA Master]] Agreement==
| | {{newisdamanual|Close-out Amount}} |
| Close-out amount concept doesn't exist under the [[1992 ISDA Master]]. Instead, terminated transactions are determined according to {{isdaprov|Market Quotation}} or {{isdaprov|Loss}}. {{isdacomparison}}
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| ==[[2002 ISDA Master]] Agreement==
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| also from the [[you'll be sorry you asked]] file.
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| “Close-out Amount” means, with respect to each Terminated Transaction or each group of Terminated Transactions
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| and a Determining Party, the amount of the losses or costs of the Determining Party that are or would be incurred
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| under then prevailing circumstances (expressed as a positive number) or gains of the Determining Party that are or
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| would be realised under then prevailing circumstances (expressed as a negative number) in replacing, or in providing
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| for the Determining Party the economic equivalent of, (a) the material terms of that Terminated Transaction or group
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| of Terminated Transactions, including the payments and deliveries by the parties under Section 2(a)(i) in respect of
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| that Terminated Transaction or group of Terminated Transactions that would, but for the occurrence of the relevant
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| Early Termination Date, have been required after that date (assuming satisfaction of the conditions precedent in
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| Section 2(a)(iii)) and (b) the option rights of the parties in respect of that Terminated Transaction or group of
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| Terminated Transactions.
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| Any Close-out Amount will be determined by the Determining Party (or its agent), which will act in good faith and
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| use commercially reasonable procedures in order to produce a commercially reasonable result. The Determining
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| Party may determine a Close-out Amount for any group of Terminated Transactions or any individual Terminated
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| Transaction but, in the aggregate, for not less than all Terminated Transactions. Each Close-out Amount will be
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| determined as of the Early Termination Date or, if that would not be commercially reasonable, as of the date or dates
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| following the Early Termination Date as would be commercially reasonable.
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| Unpaid Amounts in respect of a Terminated Transaction or group of Terminated Transactions and legal fees and out-
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| of-pocket expenses referred to in Section 11 are to be excluded in all determinations of Close-out Amounts.
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| In determining a Close-out Amount, the Determining Party may consider any relevant information, including, without
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| limitation, one or more of the following types of information:―
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|
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| (i) quotations (either firm or indicative) for replacement transactions supplied by one or more third parties that
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| may take into account the creditworthiness of the Determining Party at the time the quotation is provided and the
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| terms of any relevant documentation, including credit support documentation, between the Determining Party and the
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| third party providing the quotation;
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| (ii) information consisting of relevant market data in the relevant market supplied by one or more third parties
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| including, without limitation, relevant rates, prices, yields, yield curves, volatilities, spreads, correlations or other
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| relevant market data in the relevant market; or
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| (iii) information of the types described in clause (i) or (ii) above from internal sources (including any of the
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| Determining Party’s Affiliates) if that information is of the same type used by the Determining Party in the regular
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| course of its business for the valuation of similar transactions.
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| The Determining Party will consider, taking into account the standards and procedures described in this definition,
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| quotations pursuant to clause (i) above or relevant market data pursuant to clause (ii) above unless the Determining
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| Party reasonably believes in good faith that such quotations or relevant market data are not readily available or would
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| produce a result that would not satisfy those standards. When considering information described in clause (i), (ii) or
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| (iii) above, the Determining Party may include costs of funding, to the extent costs of funding are not and would not
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| be a component of the other information being utilised. Third parties supplying quotations pursuant to clause (i)
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| above or market data pursuant to clause (ii) above may include, without limitation, dealers in the relevant markets,
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| end-users of the relevant product, information vendors, brokers and other sources of market information.
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| Without duplication of amounts calculated based on information described in clause (i), (ii) or (iii) above, or other
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| relevant information, and when it is commercially reasonable to do so, the Determining Party may in addition
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| consider in calculating a Close-out Amount any loss or cost incurred in connection with its terminating, liquidating or
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| re-establishing any hedge related to a Terminated Transaction or group of Terminated Transactions (or any gain
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| resulting from any of them).
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| Commercially reasonable procedures used in determining a Close-out Amount may include the following:―
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| (1) application to relevant market data from third parties pursuant to clause (ii) above or information from
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| internal sources pursuant to clause (iii) above of pricing or other valuation models that are, at the time of the
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| determination of the Close-out Amount, used by the Determining Party in the regular course of its business in pricing
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| or valuing transactions between the Determining Party and unrelated third parties that are similar to the Terminated
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| Transaction or group of Terminated Transactions; and
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| (2) application of different valuation methods to Terminated Transactions or groups of Terminated Transactions
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| depending on the type, complexity, size or number of the Terminated Transactions or group of Terminated
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| Transactions.
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| {{isdaanatomy|Close-out Amount}}
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| {{isia}}
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| *{{isdaprov|Market Quotation}}
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| *{{isdaprov|Loss}}
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