Early Termination - ISDA Provision: Difference between revisions

Unlike the {{gmsla}} and many other — ahh, ''less sophisticated'' [[master agreement]]s<ref>Yes; there is some inter-[[industry association]] bitterness and snobbery here.</ref> — the {{isdama}} doesn’t have a general termination right of this sort ''at all''. It is like one of those fancy fixie pushbikes that cost seven grand and don’t even have brakes. You can ''only'' terminate {{isdaprov|Transactions}}, not the [[master agreement]] construct which sits around them. The empty vessel of a closed-out ISDA thus remains for all eternity as an immortal, ineffectual husk. This is to do with paranoid fears about the efficacy of the ISDA’s sainted [[close-out netting]] terms if you do terminate the agreement — meh; maybe — but I like to think it is because, before he was cast out from heaven, the [[Dark Lord]]<ref>Sauron, Beelzebub, [[Nosferatu]], [[Lehman Brothers]] etc.</ref> made plans to unleash his retributive fury upon the world through a sleeping army of wight-walker zombie ISDAs, doomed to roam the earth until the [[Omega|day of judgment]], ''apropos'' nothing but ''there'', not alive, but un-dead, ready to reanimate and rally to the Dark Lord’s banner and rain apocalyptic hell on we errant descendants of the [[Good Man]], who did not heed His warnings of [[financial weapons of mass destruction]].

===How the {{isdaprov|Close-out}} mechanism Works===