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Novation: Difference between revisions
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Amwelladmin (talk | contribs) (Created page with "An layman's terms a novation is the transfer in full of one party's rights and obligations under a contract to another person. The other party to the contract stays put. Nova...") |
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The consideration given by the parties for the termination of the first and creation of the second are related: In effect, there will be a MTM value payable to or from the Transferor under the first, and an equal payment to or from the Remaining Party under the second, so Transferor and Transferee settle these payments directly between each other. Remaining Party’s obligation to discharge Transferor of its liabilities under the first contract is conditional on Transferee’s agreement to accept the identical liabilities under the new Contract. | The consideration given by the parties for the termination of the first and creation of the second are related: In effect, there will be a MTM value payable to or from the Transferor under the first, and an equal payment to or from the Remaining Party under the second, so Transferor and Transferee settle these payments directly between each other. Remaining Party’s obligation to discharge Transferor of its liabilities under the first contract is conditional on Transferee’s agreement to accept the identical liabilities under the new Contract. | ||
Here you will find a version of the [[ | Here you will find a version of the [[file:ISDA Uniform Novation Agreement.docx|ISDA Uniform Novation Agreement]]. | ||