Local Business Day - IM CSD Provision

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2018 ISDA Credit Support Deed (IM) (English law)
A Jolly Contrarian owner’s manual

Paragraph Local Business Day in a Nutshell
Use at your own risk, campers!

Template:Nutshell 2018 CSD Local Business Day view template

Paragraph Local Business Day in full

Local Business Day”, unless otherwise specified in Paragraph 13, means:

(i) in relation to a transfer of cash or other property (other than securities) under this Deed, 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 Segregated Accountis located and, if different, in the principal financial centre, if any, of the currency of such payment or, as applicable, place of delivery;
(ii) in relation to a transfer of securities under this Deed, (a) 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 and (b) 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 Segregated Accountis located;
(iii) in relation to a valuation under this Deed, 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; and
(iv) in relation to any notice or other communication or other reference to Local Business Day under this Deed, 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 and comparisons

Related Agreements
Click here for the text of Section Local Business Day in the 2016 ISDA VM CSA
Comparisons
2016 English law VM CSA and 2018 English law IM CSD: click for comparison

Resources and navigation

Resources: 2018 CSD Wikitext | 2018 CSD Nutshell Wikitext
Navigation 1 (Interpretation) | 2 (Security) | 3 (Credit Support Obligations) | 4 (Conditions Precedent, Transfers, Timing, Calculations and Substitutions) | 5 (Dispute Resolution) | 6 (Custody Arrangements and the Control Agreement) | 7 (Default) | 8 (Certain Rights and Remedies) | 9 (Representation) | 10 (Expenses) | 11 (Other Provisions) | 12 (Definitions) | 13 (Elections and Variables)

Index — Click ᐅ to expand:

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Content and comparisons

Broadly the same as the 2016 English law VM CSA, though account must be taken of the location of the Segregated Accounts, and also the 2018 English law IM CSD has eschewed the idea of Valuation Date Locations and things like that (in favour of Calculation Date Location (IM) and so on).
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Summary

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.

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See also

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References