Second Method - ISDA Provision: Difference between revisions

Second Method - ISDA Provision (view source)

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-{{fullanat|isda|Second Method|2002}}
+{{fullanat|isda|6(e)(i)|1992}}
-The ''' Second Method''' is a method of determining the {{isdaprov|Early Termination Payment}} due upon close out of an {{1992ma}}. It requires a payment to be made equal to the net value of the terminated transactions, even if this means a payment ''to'' the {{isdaprov|Defaulting Party}}.
+''Compare with {{isdaprov|Close-out Amount}} under the {{2002ma}}''<br>
+The ''' Second Method''' is a method of determining the {{isdaprov|Early Termination Amount}} due upon close out of an {{1992ma}}. It requires a payment to be made equal to the net value of the terminated transactions, even if this means a payment ''to'' the {{isdaprov|Defaulting Party}}.
 In case of a termination event under the {{isdama}} it is good to have your payment and calculation methods well-defined. The section {{isdaprov|Payments on Early Termination}} ({{isdama}} Section {{isdaprov|6(e)}} and Schedule 1(f)) covers this.