In a Nutshell™ Section 3(a)(v):
- 3(a)(v) Obligations Binding. Its obligations under this Agreement and any Credit Support Document to which it is a party are its legal, valid and binding obligations, enforceable in accordance with their terms (subject to general laws affecting creditors’ rights and equitable principles).
view template
2002 ISDA full text of Section 3(a)(v):
- 3(a)(v) Obligations Binding. Its obligations under this Agreement and any Credit Support Document to which it is a party constitute its legal, valid and binding obligations, enforceable in accordance with their respective terms (subject to applicable bankruptcy, reorganisation, insolvency, moratorium or similar laws affecting creditors’ rights generally and subject, as to enforceability, to equitable principles of general application (regardless of whether enforcement is sought in a proceeding in equity or at law)).
view template
Click here for the text of Section 3(a)(v) in the 1992 ISDA
Index: Click ᐅ to expand:Navigation
|
|
Now given that a Credit Support Document will generally be a deed of guarantee, Letter of Credit or some other third party form of credit assurance from a, you know, third party to which a Party in whose favour it is provided will not a “party” — and no, a Credit support Annex is not a Credit Support Document, however much it might sound like one, one might wonder what the point would be of mentioning, in this sub-section, Credit Support Documents to which a Party is party.
Well — and this might come as a surprise, if you’re an ISDA ingénue; old lags won’t bat an eyelid — there isn’t much point.
But does anyone, other than the most insufferable pedant, really care? I mean why would you write a snippy wiki article about some fluffy but fundamentally harmless language, unless you were a stone cold bore?
Hang on: Why are you looking at me like that?