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Set-off - ISDA Provision: Difference between revisions
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==={{2002ma}}=== | ==={{2002ma}}=== | ||
The 2002 ISDA contains a standard {{isdaprov|Set-off}} provision which refers to a “Payer” and “Payee”. | The 2002 ISDA contains a standard {{isdaprov|Set-off}} provision which refers to a “Payer” and “Payee”. | ||
*'''Affiliates''': | *'''Affiliates''': Either the "Payer" or the "Payee" could the non-{{isdaprov|Defaulting Party}} or the non-{{isdaprov|Affected Party}} and so to include {{isdaprov|Affiliates}} into the 2002 Definition becomes problematic and cumbersome. Generally the market practice when using a 2002 schedule is therefore: | ||
**'''Where Affiliates are required''': to use bespoke wording | **'''Where Affiliates are required''': to use bespoke wording; | ||
**'''Where Affiliates are not required''': and then fallback to the 2002 standard wording above. | **'''Where Affiliates are not required''': and then fallback to the 2002 standard wording above. | ||
*'''Scope''': The 2002 language provides for set-off following an {{isdaprov|Event of Default}}, {{isdaprov|CEUM}}, or any other {{isdaprov|Termination Event}} where there is one {{isdaprov|Affected Party}} and '''''all''''' outstanding transactions are {{isdaprov|Affected Transaction}}s.The {{Bank}} standard wording provides for set-off where there is an {{isdaprov|Event of Default}}, {{isdaprov|CEUM}}, {{isdaprov|Illegality}} or {{isdaprov|ATE}}. There is no specific reference to all {{isdaprov|Transaction}}s being {{isdaprov|Affected Transaction}}s but this is implied in any Set-off provision by its nature: | *'''Scope''': The 2002 language provides for set-off following an {{isdaprov|Event of Default}}, {{isdaprov|CEUM}}, or any other {{isdaprov|Termination Event}} where there is one {{isdaprov|Affected Party}} and '''''all''''' outstanding transactions are {{isdaprov|Affected Transaction}}s.The {{Bank}} standard wording provides for set-off where there is an {{isdaprov|Event of Default}}, {{isdaprov|CEUM}}, {{isdaprov|Illegality}} or {{isdaprov|ATE}}. There is no specific reference to all {{isdaprov|Transaction}}s being {{isdaprov|Affected Transaction}}s but this is implied in any Set-off provision by its nature: | ||