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| {{fullanat|isda|Credit Support Document |2002}} | | {{isdamanual|Credit Support Document}} |
| Being the document by which {{isdaprov|Credit Support}} is provided by a {{isdaprov|Credit Support Provider}}.
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| Note that a {{tag|CSA}} should '''not''' be treated as a {{isdaprov|Credit Support Document}}, as it is in fact a {{isdaprov|Transaction}} under the {{isdama}}.
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| Note also the pitfalls of providing [[Guarantee]]s with respect to individual {{isdaprov|Transaction}}s under an {{isdama}}. It doesn't work. [[Guarantee|Here's why]].
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| ===[[Guarantees]] under the {{isdama}} and why a {{isdaprov|Transaction}}-specific {{isdaprov|guarantee}} is a bad idea===
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| {{isdaguaranteewarning}}
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| Should a client request a transaction-specific parental guarantee under an {{isdama}} instead of the usual “all obligations” guarantee of all obligations under the {{isdama}} and all transactions under it, escalate immediately.
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| We should *never* agree to the {{isdaprov|guarantee}} of individual {{isdaprov|Transaction}}s (or accepting [[letter of credit|Letters of Credit]] with respect to individual {{isdaprov|transactions}}) under an {{isdama}}. The reason relates to the way {{isdama}}s are closed out inder Section {{isdaprov|6(e)}}:
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| {{box|{{isdaq|6(e)(i)|2002}}}}
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| *On a close-out, each {{isdaprov|Transaction}} is terminated, the individual close-out amounts are determined, they’re aggregated up to a single net sum (i.e. negative exposures are netted off against positive ones) and the single Early Termination Payment is payable under {{isdaprov|6(e)}} ({{isdaprov|Payments on Early Termination}}) of the {{isdama}}.
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| *That is to say, it is *not* payable under the {{isdaprov|Transaction}} at all - it's payable under the {{isdama}} itself.
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| *Therefore, if the guarantee relates to the single {{isdaprov|Transaction}} only, at precisely the point you wish to rely on it (i.e., upon the party’s default), it will vanish. Same goes for Letters of Credit.
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| {{isdaanatomy}}
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