Force Majeure Event - ISDA Provision: Difference between revisions

Force Majeure Event - ISDA Provision (view source)

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 ===Incorporating Force Majeure into the {{1992ma}}===
-On the subject of incorporating Force Majeure into the 1992 Master:
+One can incorporating {{isdaprov|Force Majeure}} into the {{isdaprov|1992ma}} as long as you carry the concept through to its logical conclusion i.e.:
+*Include a {{isdaprov|Hierachy of Events}};
-No problem including the concept but it then has to be carried through to its logical conclusion i.e.:
+*Consider the impact re a deferral of {{isdaprov|Early Termination Amount}} etc.
-*hierachy of events,
+The concept also impacts the basis of [[Close Out]] because the {{isdaprov|2002ma}} requires use of true mids for valuation i.e, not the mean of each party's view of the bid/offer where a {{isdaprov|Force Majeure Event}} (or {{isdaprov|Illegality}}) occurs, which is effectively what you get under the {{1992ma}} with a "Two Affected Parties" option.
-*impact re deferral of Early Termination Amount etc.
-The concept also impacts basis of Close Out because the 2002 requires use of true mids for valuation i.e, not the mean of each party's view of the bid/offer where a force majeure event (or illegality) occurs, which is what you effectively get under the 1992 "two affected parties" option.
 {{isdaanatomy}}