Comply With Laws - 1992 ISDA Provision

1992 ISDA Master Agreement A Jolly Contrarian owner’s manual Section 4(c) in a Nutshell™ Use at your own risk, campers! 4(c) Comply with Laws. It will comply with all applicable laws if not doing so would materially impair its performance of this Agreement or any Credit Support Document. view template Section 4(c) in full 4(c) Comply with Laws. It will comply in all material respects with all applicable laws and orders to which it may be subject if failure so to comply would materially impair its ability to perform its obligations under this Agreement or any Credit Support Document to which it is a party. view template Related agreements and comparisons Related Agreements Click here for the text of Section 4(c) in the 2002 ISDA Comparisons Click to compare this section in the 1992 ISDA and 2002 ISDA. Resources and navigation Resources Wikitext | Nutshell wikitext | 2002 ISDA wikitext | 2002 vs 1992 Showdown | 2006 ISDA Definitions | 2008 ISDA Navigation Preamble | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 Events of Default: 5(a)(i) Failure to Pay or Deliver • 5(a)(ii) Breach of Agreement • 5(a)(iii) Credit Support Default • 5(a)(iv) Misrepresentation • 5(a)(v) Default Under Specified Transaction • 5(a)(vi) Cross Default • 5(a)(vii) Bankruptcy • 5(a)(viii) Merger Without Assumption • Termination Events: 5(b)(i) Illegality • 5(b)(ii) Tax Event • 5(b)(iii) Tax Event Upon Merger • 5(b)(iv) Credit Event Upon Merger • 5(b)(v) Additional Termination Event • Index — Click ᐅ to expand: ► 1992 ISDA Get in touch Comments? Questions? Suggestions? Requests? Sign up for our newsletter? Questions? We’d love to hear from you. BREAKING: Get the new weekly newsletter here Old editions here

Content and comparisons

Section 4(c) represents another impeachable outing for the 1992 all-star line-up of ISDA’s crack drafting squad™. Their successors, a decade down the line, couldn’t see any way to improve on their work. The two versions are thus the same.
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Summary

Hardly controversial that one must obey the law, but note this apparently inoffensive covenant converts that general public obligation into a private civil one, with definitive commercial consequences to your counterparty, hence the couching of the language in terms of materiality (twice) and specific ability to perform obligations under the ISDA Master Agreement.
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See also

• Representations and Warranties Anatomy
• Covenant
  

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