ISDA Comparison: Difference between revisions

*'''Illegality''': The definition of {{isdaprov|Illegality}} remains the same with the exception of the clarification that an {{isdaprov|Illegality}} exists even if it only affects a single Office so long as the affected Office is the Office through which payments and deliveries are made for the affected {{isdaprov|Transaction}} . <br>

*'''Force Majeure''': {{isdaprov|Force Majeure}} is undefined except as a “{{isdaprov|Force Majeure}} or act of state” that prevents a party from performing or causing performance to be impossible or impracticable. A party must use all reasonable efforts to overcome the {{isdaprov|Force Majeure}} , but it need not incur a loss in doing so. Either party may terminate the Agreement because of a {{isdaprov|Force Majeure}} unless the {{isdaprov|Force Majeure}} affects payment obligations under a {{isdaprov|Credit Support Document}} , in which case only the {{isdaprov|non-Affected party}} can terminate. The party affected by the {{isdaprov|Force Majeure}} is the {{isdaprov|Affected party}} and therefore the party that calculates the {{isdaprov|Close-Out Amount}} .  

*'''Waiting Periods''': A party is no longer required to attempt to transfer {{isdaprov|Transaction}}s as a condition to terminating for {{isdaprov|Illegality}} . However, for any {{isdaprov|Transaction}} affected by an {{isdaprov|Illegality}} or a {{isdaprov|Force Majeure}} , payment or delivery under the affected {{isdaprov|Transaction}} will be deferred until the expiration of a {{isdaprov|Waiting Period}} of three Local Business Days (for {{isdaprov|Illegality}}) or eight Local Business Days (for {{isdaprov|Force Majeure}}) . Termination and liquidation of the Affected {{isdaprov|Transaction}}s cannot occur until the {{isdaprov|Waiting Period}} has expired unless the {{isdaprov|Illegality}} or {{isdaprov|Force Majeure}} affects {{isdaprov|Credit Support Document}}s where delivery or payment is required on the relevant day, in which case there is no {{isdaprov|Waiting Period}}. Once the {{isdaprov|Waiting Period}} expires, the close-out calculation is made on the basis of mid-market values, reflecting the nofault nature of the {{isdaprov|Illegality}} and {{isdaprov|Force Majeure}} {{isdaprov|Termination Event}}s. Unless the {{isdaprov|Illegality}} or {{isdaprov|Force Majeure}} relates to obligations under a {{isdaprov|Credit Support Document}} (in which case the {{isdaprov|Affected party}} may not declare an {{isdaprov|Early Termination Date}}), either party may declare an {{isdaprov|Early Termination Date}} for {{isdaprov|Transaction}}s affected by an {{isdaprov|Illegality}} or a {{isdaprov|Force Majeure}} . The party declaring the {{isdaprov|Early Termination Date}} may terminate any or all Affected {{isdaprov|Transaction}}s. However, if a party terminates fewer than all Affected {{isdaprov|Transaction}}s, the other party can terminate on the declared {{isdaprov|Early Termination Date}} all or some of the remaining {{isdaprov| Affected Transaction}}s. <br>

#if an occurrence would constitute an {{isdaprov|Illegality}} '''''and''''' a {{isdaprov|Force Majeure}} , the occurrence will be treated as an {{isdaprov|Illegality}} ;  

#if an occurrence would constitute an {{isdaprov|Illegality}} '''''or''''' {{isdaprov|Force Majeure}} '''''and''''' an {{isdaprov|Event of Default}} (other than an {{isdaprov|Event of Default}} as described in clause (ii)) or Other {{isdaprov|Termination Event}} , then it will be treated as the applicable {{isdaprov|Event of Default}} or Other {{isdaprov|Termination Event}} and not as a {{isdaprov|Force Majeure}} or {{isdaprov|Illegality}}