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Equity Notional Reset - Equity Derivatives Provision: Difference between revisions
Equity Notional Reset - Equity Derivatives Provision (view source)
Revision as of 13:50, 7 April 2014
, 7 April 2014→Commentary
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If parties wish to extend the {{eqderivprov|Floating Amount Payer Calculation Period}} in the situation where a {{eqderivprov|Payment Date}} does not correspond with a {{eqderivprov|Cash Settlement Payment Date}}, they should consider including the following additional language to the end of the definition of Payment Date: | If parties wish to extend the {{eqderivprov|Floating Amount Payer Calculation Period}} in the situation where a {{eqderivprov|Payment Date}} does not correspond with a {{eqderivprov|Cash Settlement Payment Date}}, they should consider including the following additional language to the end of the definition of Payment Date: | ||
'"provided that, if on such date the corresponding Cash Settlement Payment Date has not yet occurred, such Payment Date shall be postponed to the date on which the Cash Settlement Payment Date occurs and the Floating Amount Payer shall pay the Floating Amount due in relation to the relevant Calculation Period on that postponed Payment Date." ' | ''"provided that, if on such date the corresponding Cash Settlement Payment Date has not yet occurred, such Payment Date shall be postponed to the date on which the Cash Settlement Payment Date occurs and the Floating Amount Payer shall pay the Floating Amount due in relation to the relevant Calculation Period on that postponed Payment Date."'' | ||
As an alternative to extending the {{eqderivprov|Floating Amount Payer Calculation Period}} in this situation, the parties may wish to defer payment of the {{eqderivprov|Floating Amount}} to the {{eqderivprov|Cash Settlement Payment Date}}, and accrue interest during that period. lf the parties wish to take that approach, they may wish to consider adding the following language: | As an alternative to extending the {{eqderivprov|Floating Amount Payer Calculation Period}} in this situation, the parties may wish to defer payment of the {{eqderivprov|Floating Amount}} to the {{eqderivprov|Cash Settlement Payment Date}}, and accrue interest during that period. lf the parties wish to take that approach, they may wish to consider adding the following language: | ||
'", provided that, if on such date (the "Original Payment Date | ''", provided that, if on such date (the "Original Payment Date") the corresponding Cash Settlement Payment Date has not yet occurred, (i) the Calculation Period will be deemed to end on (but exclude) the Original Payment Date, (ii) interest will accrue on the Floating Amount from (and including) the Original Payment Date to (but exch1ding) the Cash Settlement Payment Date at [ ] calculated on the basis of daily compounding and the actual number of days elapsed and (iii) the Floating Amount Payer shall pay the relevant Floating Amount, together with any accrued interest, on the Cash Settlement Payment Date".'' | ||
====Related Provisions==== | ====Related Provisions==== | ||