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Employee Retirement Income Security Act of 1974: Difference between revisions
Employee Retirement Income Security Act of 1974 (view source)
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Famously, ERISA plans tend to be set '''not''' to [[Netting|net]], and for the unholiest of reasons, courtesy of the phantasmagorical imagination of some wise [[mediocre lawyer|counsel]] at Cadwalader, upon whom the whole market relies. | Famously, ERISA plans tend to be set '''not''' to [[Netting|net]], and for the unholiest of reasons, courtesy of the phantasmagorical imagination of some wise [[mediocre lawyer|counsel]] at Cadwalader, upon whom the whole market relies. | ||
This gentleman’s opinion is predicated on the risk that a court would interpret the {{tag|ERISA}} act as requiring the US Bankruptcy Code ''as it stood in 1971'' to be applied to the insolvency of an {{tag|ERISA}} plan, rather than as it stands at the time of insolvency. The reason that’s a problem is that the “safe harbors” for {{tag|derivative}} closeout in the {{tag|Bankruptcy Code}} were only enacted in the 1980s. | This gentleman’s opinion is predicated on the risk that a court would interpret the {{tag|ERISA}} act as requiring the US [[Bankruptcy Code]] ''as it stood in 1971'' to be applied to the insolvency of an {{tag|ERISA}} plan, rather than as it stands at the time of insolvency. The reason that’s a problem is that the “safe harbors” for {{tag|derivative}} closeout in the {{tag|Bankruptcy Code}} were only enacted in the 1980s. | ||
This is the fear that prompts attorneys the world over to interpose “[[as amended from time to time]]” and phrases like it into their drafts. It is a frankly fantastical fear: Not only is it impossible to be certain, at this remove, exactly how the US Bankruptcy Code stood in 1971 much less how it might have been interpreted in those days, but many of the institutions and concepts it relies on will have since been abolished or materially changed. | This is the fear that prompts attorneys the world over to interpose “[[as amended from time to time]]” and phrases like it into their drafts. It is a frankly fantastical fear: Not only is it impossible to be certain, at this remove, exactly how the US Bankruptcy Code stood in 1971 much less how it might have been interpreted in those days, but many of the institutions and concepts it relies on will have since been abolished or materially changed. | ||