Force Majeure Event - ISDA Provision: Difference between revisions

Force Majeure Event - ISDA Provision (view source)

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→‎Section {{isdaprov|5(b)(ii)}} in the {{1992ma}}

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 ===Section {{isdaprov|5(b)(ii)}} in the {{1992ma}}===
-There is no equivalent to the {{isdaprov|Force Majeure Event}} in the {{1992ma}}. An {{isdaprov|Impossibility}} clause was frequently written into the schedule, which endeavoured to do the same thing.
+There is no equivalent to the {{isdaprov|Force Majeure Event}} in the {{1992ma}}. An {{isdaprov|Impossibility}} clause was frequently written into the schedule, which endeavoured to do the same thing. Note a few caveats with regard to Force Majeure Events:
+*'''{{isdaprov|Hierarchy of Events}}''': Under Section {{isdaprov|5(c)}} an {{isdaprov|Illegality}} or a {{isdaprov|Forece Majeure Event}} "trumps" a {{isdaprov|Failure to Pay}}, {{isdaprov|Breach of Agreement}} or {{isdaprov|Credit Support Default}} {{isdaprov|Event of Default}} occasioned by the same circumstances (e.g. a {{isdaprov|Failure to Pay or Deliver}} occasioned by an act of God is a {{isdaprov|Force Majeure Event}} and not an {{isdaprov|Event of Default}}). this doesn't apply with respect to other Events of Default though (such as {{isdaprov|Bankruptcy}} or {{isdaprov|Cross Default}}).
+*'''{{isdaprov|Deferral of Payments and Deliveries During Waiting Period}}''':  Upon an {{isdaprov|Illegality}} or {{isdaprov|Force Majeure Event}}, payments and deliveries are deferred until the earlier of:
+**the expiry of any {{isdaprov|Waiting Period}}; and
+**the date on which the {{isdaprov|Illegality}} or {{isdaprov|Force Majeure Event}} is cured.
 ===Incorporating Force Majeure into the {{1992ma}}===