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Even though generally they’re not actively monitored, [[NAV trigger|NAV triggers]] lead to the tedious cottage industry of [[waiver|waiving]] breaches of the NAV trigger. This is because while a prime broker’s credit department doesn't have the bandwidth to be monitoring thousands of NAV triggers, the hdge fund who has granted them will, and if it does suffer a significant drawdown, it won’t like an unexploded {{isdaprov|Additional Termination Event}} sitting on its conscience. It will ask for a waiver. Thanks to the [[no oral modification]] clause in Section {{isdaprov|9(b)}} — which extends to waivers — a [[NAV trigger]] waiver must be given in writing<ref>This has been recently confirmed in {{casenote|Rock Advertising Limited|MWB Business Exchange Centres Limited}}.</ref>. This then leads to an argument between [[legal]] and the [[credit department]] as to whose job it is to send out this waiver. | Even though generally they’re not actively monitored, [[NAV trigger|NAV triggers]] lead to the tedious cottage industry of [[waiver|waiving]] breaches of the NAV trigger. This is because while a prime broker’s credit department doesn't have the bandwidth to be monitoring thousands of NAV triggers, the hdge fund who has granted them will, and if it does suffer a significant drawdown, it won’t like an unexploded {{isdaprov|Additional Termination Event}} sitting on its conscience. It will ask for a waiver. Thanks to the [[no oral modification]] clause in Section {{isdaprov|9(b)}} — which extends to waivers — a [[NAV trigger]] waiver must be given in writing<ref>This has been recently confirmed in {{casenote|Rock Advertising Limited|MWB Business Exchange Centres Limited}}.</ref>. This then leads to an argument between [[legal]] and the [[credit department]] as to whose job it is to send out this waiver. | ||
Legal: “You imposed the stupid [[NAV trigger]], so you can damn well send out waivers for it.” | '''[[Legal]]''': “You imposed the stupid [[NAV trigger]], so you can damn well send out waivers for it.” | ||
Credit: “Help! Help! It’s a legal agreement! I am not qualified to do this! I cannot opine!” | |||
'''[[Credit]]''': “Help! Help! It’s a legal agreement! I am not qualified to do this! I cannot opine!” | |||
You’ll never guess where the [[JC]]’s sympathies lie. | You’ll never guess where the [[JC]]’s sympathies lie. |