Events of Default (Early Termination Payments) - ISDA Provision: Difference between revisions
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{{ | {{isdaanat|6(e)(i)}} | ||
{{ | The effect of this is that all {{isdaprov|transaction}}s are terminated and the recourse is to a net sum under Section {{isdaprov|6(e)}} of the {{isdama}} - NOT under the {{isdaprov|Transactions}}. | ||
Therefore, if your [[credit support]] (particularly [[guarantee]]s or [[LC|letters of credit]]) explicitly references the {{isdaprov|Transaction}}, you may lose any credit support at precisely the point you need it. Further commentary on the [[Guarantee]] page. | |||
{{seealso}} | {{seealso}} | ||
*[[Guarantee]] | *[[Guarantee]] |
Revision as of 08:22, 18 April 2018
The effect of this is that all transactions are terminated and the recourse is to a net sum under Section 6(e) of the ISDA Master Agreement - NOT under the Transactions.
Therefore, if your credit support (particularly guarantees or letters of credit) explicitly references the Transaction, you may lose any credit support at precisely the point you need it. Further commentary on the Guarantee page.