Other Interest Elections - VM CSA Provision

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2016 ISDA Credit Support Annex (VM) (English law)
A Jolly Contrarian owner’s manual™

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Paragraph 11(g)(iii) in a Nutshell

Use at your own risk, campers!

Full text of Paragraph 11(g)(iii)

11(g) Distributions and Interest Amount (VM)
(i) Interest Rate (VM). The “Interest Rate (VM)” in relation to each Eligible Currency specified above will be [SPECIFY].
(ii) Transfer of Interest Payment (VM) or application of Interest Amount (VM).
Interest Transfer: [Applies/does not apply].
Interest Payment Netting: [Applies/does not apply].
Interest Adjustment: [Applies/does not apply].
For the purposes of Paragraph 5(c)(ii)(B), the Credit Support Balance (VM) will be adjusted by the Transferee on or prior to the third Local Business Day of the following calendar month.
(iii) Other Interest Elections.
Negative Interest: [Applies/does not apply].
Daily Interest Compounding: [Applies/does not apply].
(iv) Alternative to Interest Amount (VM). The provisions of Paragraph 5(c)(ii) will apply.


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Content and comparisons

Template:M comp disc 2016 CSA 11(g)(iii)

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Summary

You can have all kinds of conceptual fun and games — all to no real practical end — if Negative Interest applies, because the Interest Payer VM in that case might be the Transferor or the Transferee, depending on the currency.

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See also

Template:M sa 2016 CSA 11(g)(iii)

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References