Local Business Day - CSA Provision

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CSA Anatomy


In a Nutshell Section Local Business Day:

Template:Nutshell 1995 CSA Local Business Day view template

1995 ISDA CSA full text of Section Local Business Day:

Local Business Day”, unless otherwise specified in Paragraph 11(h), means:

(i) in relation to a transfer of cash or other property (other than securities) under this Annex, a day on which commercial banks are open for business (including dealings in foreign exchange and foreign currency deposits) in the place where the relevant account is located and, if different, in the principal financial centre, if any, of the currency of such payment;
(ii) in relation to a transfer of securities under this Annex, a day on which the clearance system agreed between the parties for delivery of the securities is open for the acceptance and execution of settlement instructions or, if delivery of the securities is contemplated by other means, a day on which commercial banks are open for business (including dealings in foreign exchange and foreign currency deposits) in the place(s) agreed between the parties for this purpose;
(iii) in relation to a valuation under this Annex, a day on which commercial banks are open for business (including dealings in foreign exchange and foreign currency deposits) in the place of location of the Valuation Agent and in the place(s) agreed between the parties for this purpose; and
(iv) in relation to any notice or other communication under this Annex, a day on which commercial banks are open for business (including dealings in foreign exchange and foreign currency deposits) in the place specified in the address for notice most recently provided by the recipient.

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Related Agreements
Click here for the text of Section Local Business Day in the 1995 English Law CSA
Click here for the text of Section Local Business Day in the 2016 English Law VM CSA
Click here for the text of the equivalent, Section Local Business Day in the 2016 NY Law VM CSA
Comparisons
1995 English Law CSA and 2016 English law VM CSA: click for comparison
2016 English law VM CSA and 2016 NY Law VM CSA: click for comparison

Resources Full wikitext | Nutshell wikitext
Navigation 1 (Interpretation) | 2 (Credit Support Obligations) | 3 (Transfers, Calculations and Exchanges) | 4 (Dispute Resolution) | 5 (Title Transfer etc) | 6 (Default) | 7 (Representation) | 8 (Expenses) | 9 (Miscellaneous) | 10 (Definitions) | 11 (Elections and Variables)

Index — Click ᐅ to expand:

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See also Local Business Day in the ISDA Master Agreement. The many gorgeous, multi-hued variations on the business day can be enjoyed as follows:

Spoiler: the ISDA one is, by far, the best.

How the business days work for demands under a Credit Support Annex

This should give you an insight into why lawyers find ISDA documentation so compelling.

  • Each party can specify however many Valuation Date Locations it likes.
  • Tip: the fewer you specifiy, the greater the chance none will be open on a given day, and you will be excused from a margin call, so don’t overdo it. One should be ample.

Easy.