Default Rate - 1992 ISDA Provision
1992 ISDA Master Agreement
Section Default Rate in a Nutshell™
Use at your own risk, campers!
Full text of Section Default Rate
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No change between the 1992 ISDA and the 2002 ISDA.
Default interest is one of those perennial things in finance and is generally a rate higher than the implied funding rate for the period and person in question. You might well ask — though one might, as the JC does, struggle heroically to not go there — whether an arbitrary loading on what ought to be a fair estimate of one’s actual carrying cost is not an unenforceable penalty, but hey, everyone does it.