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Cross Default - ISDA Provision: Difference between revisions
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{{isdaanat|5(a)(vi)}} | |||
''Want to quickly convert to [[cross acceleration]]? Click '''[[Cross Acceleration - ISDA Provision|here]]'''.''<br> | ''Want to quickly convert to [[cross acceleration]]? Click '''[[Cross Acceleration - ISDA Provision|here]]'''.''<br> | ||
===General=== | ===General=== | ||
''This article is specifically about the {{isdaprov|Cross Default}} provision in the {{isdama}}. See: [[cross default]] for a general discussion of the concept. | ''This article is specifically about the {{isdaprov|Cross Default}} provision in the {{isdama}}. See: [[cross default]] for a general discussion of the concept. | ||
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{{DUST and Cross Default Comparison}} | {{DUST and Cross Default Comparison}} | ||
===The difference between the two formulations=== | ===The difference between the two formulations=== | ||
[[File:Crossing Threshold Hope.jpg|thumb|left|About as much use as a cross default clause]] | |||
====Measure of the Threshold==== | ====Measure of the Threshold==== | ||
*'''The 1992 Version''': This contemplates default ''in an aggregate '''amount''''' exceeding the {{isdaprov|Threshold Amount}} which would justify early termination of the {{isdaprov|Specified Indebtedness}} - that is to say the defaulted payment contributes to the {{isdaprov|Threshold Amount}}, not the principal amount of the Specified Indebtedness itself; | *'''The 1992 Version''': This contemplates default ''in an aggregate '''amount''''' exceeding the {{isdaprov|Threshold Amount}} which would justify early termination of the {{isdaprov|Specified Indebtedness}} - that is to say the defaulted payment contributes to the {{isdaprov|Threshold Amount}}, not the principal amount of the Specified Indebtedness itself; | ||