Failure to Pay or Deliver - ISDA Provision: Difference between revisions

Failure to Pay under Section 5(a)(i) if the {{isdama}}: where a party fails to pay or deliver on time and does not remedy on or before the 3rd local business day (being the default under a {{1992ma}}, or the first business day after (under the {{2002ma}}) after notice. This requires:

*Notice of the failure (which by defintion can be validly given ''only after'' close on on the failure date and, by dint of Section 12 (a) (Notices), is deemed to be effective on the following business day, T+1)

*'''Grace Period''': After the notice is delivered, another one (2002) or three (1992) full business days (therefore to the end of T+2 (2002) or T+4 (1992))

*The termination may only be served after close at the expiry of the grace period, so therefore the first day on which a  termination notice following a failure to pay Event of Default can be effective under an ISDA is T+3 (2002) or T+5 (1992).