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Failure to Pay or Deliver - ISDA Provision: Difference between revisions
Failure to Pay or Deliver - ISDA Provision (view source)
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{{ | {{fullanat2|isda|5(a)(i)|5(a)(i)}} | ||
Failure to Pay under Section {{isdaprov|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: | Failure to Pay under Section {{isdaprov|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: | ||
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*'''[[Grace Period]]''': After the notice is delivered, another one ({{2002ma}}) or three ({{1992ma}}) full business days (therefore to the end of T+2 (2002) or T+4 (1992)) | *'''[[Grace Period]]''': After the notice is delivered, another one ({{2002ma}}) or three ({{1992ma}}) 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 {{isdaprov|Event of Default}} can be effective under an ISDA is T+3 ({{2002ma}}) or T+5 {{1992ma}}. | *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 {{isdaprov|Event of Default}} can be effective under an ISDA is T+3 ({{2002ma}}) or T+5 {{1992ma}}. | ||