|
|
(30 intermediate revisions by the same user not shown) |
Line 1: |
Line 1: |
| {{ISDAnumberingdiscrepancy}} | | {{newisdamanual|Force Majeure}} |
| | |
| ==Section 5(b)(ii) {{2002ma}}==
| |
| (ii) Force Majeure Event. After giving effect to any applicable provision, disruption fallback or remedy specified in, or
| |
| pursuant to, the relevant Confirmation or elsewhere in this Agreement, by reason of force majeure or act of state occurring
| |
| after a Transaction is entered into, on any day:―
| |
| (1) the Office through which such party (which will be the [[Affected Party]]) makes and receives payments or deliveries with
| |
| respect to such Transaction is prevented from performing any absolute or contingent obligation to make a payment or delivery
| |
| in respect of such Transaction, from receiving a payment or delivery in respect of such Transaction or from complying with
| |
| any other material provision of this Agreement relating to such Transaction (or would be so prevented if such payment,
| |
| delivery or compliance were required on that day), or it becomes impossible or impracticable for such Office so to perform,
| |
| receive or comply (or it would be impossible or impracticable for such Office so to perform, receive or comply if such
| |
| payment, delivery or compliance were required on that day); or
| |
| (2) such party or any [[Credit Support Provider]] of such party (which will be the [[Affected Party]]) is prevented from performing
| |
| any absolute or contingent obligation to make a payment or delivery which such party or Credit Support Provider has under
| |
| any [[Credit Support Document]] relating to such Transaction, from receiving a payment or delivery under such Credit Support
| |
| Document or from complying with any other material provision of such Credit Support Document (or would be so prevented if
| |
| such payment, delivery or compliance were required on that day), or it becomes impossible or impracticable for such party or
| |
| Credit Support Provider so to perform, receive or comply (or it would be impossible or impracticable for such party or
| |
| Credit Support Provider so to perform, receive or comply if such payment, delivery or compliance were required on that day),
| |
|
| |
| so long as the force majeure or act of state is beyond the control of such Office, such party or such Credit Support
| |
| Provider, as appropriate, and such Office, party or Credit Support Provider could not, after using all reasonable efforts
| |
| (which will not require such party or Credit Support Provider to incur a loss, other than immaterial, incidental expenses),
| |
| overcome such prevention, impossibility or impracticability;
| |
| | |
| There is no equivalent in the {{1992ma}}.
| |
| | |
| ===Incorporating Force Majeure into the {{1992ma}}===
| |
| On the subject of incorporating Force Majeure into the 1992 Master:
| |
| | |
| No problem including the concept but it then has to be carried through to its logical conclusion i.e.:
| |
| *hierachy of events,
| |
| *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}}
| |