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Section 2(a)(iii) - ISDA Provision: Difference between revisions
→Amendment to Section 2(e) of the {{1992ma}} only
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NB there isn't a Section 2(e) in [[2002 ISDA Master]] - this amendment is purely to bring the {{1992isda}}it in line with the 2002 provision on {{isdaprov|Interest and Compensation}}:'' | NB there isn't a Section 2(e) in [[2002 ISDA Master]] - this amendment is purely to bring the {{1992isda}}it in line with the 2002 provision on {{isdaprov|Interest and Compensation}}:'' | ||
'''Default Interest; Other Amounts'''. Prior to the occurrence or effective designation of an Early | {{isdaquote|{{isdaprov|2(e)}} '''{{isdaprov|Default Interest; Other Amounts}}'''. Prior to the occurrence or effective designation of an Early <br> | ||
Termination Date in respect of the relevant Transaction, a party that defaults in the performance of any | {{isdaprov|Termination Date}} in respect of the relevant {{isdaprov|Transaction}}, a party that defaults in the performance of any<br> | ||
payment obligation will, to the extent permitted by law and subject to Section 6(c), be required to pay interest | payment obligation will, to the extent permitted by law and subject to Section {{isdaprov|6(c)}}, be required to pay interest<br> (before as well as after judgment) on the overdue amount to the other party on demand in the same currency<br> | ||
as such overdue amount, for the period from (and including) the original due date for payment to (but<br> | |||
as such overdue amount, for the period from (and including) the original due date for payment to (but | excluding) the date of actual payment, at the {{isdaprov|Default Rate}}. Such interest will be calculated on the basis of<br> | ||
excluding) the date of actual payment, at the Default Rate. Such interest will be calculated on the basis of | daily compounding and the actual number of days elapsed. If, prior to the occurrence or effective designation<br> | ||
daily compounding and the actual number of days elapsed. If, prior to the occurrence or effective designation | of an {{isdaprov|Early Termination Date}} in respect of the relevant {{isdaprov|Transaction}}, a party defaults in the performance of<br> | ||
of an Early Termination Date in respect of the relevant Transaction, a party defaults in the performance of | any obligation required to be settled by delivery, it will compensate the other party on demand if and to the<br> | ||
any obligation required to be settled by delivery, it will compensate the other party on demand if and to the | extent provided for in the relevant {{isdaprov|Confirmation}} or elsewhere in this {{isdaprov|Agreement}}. '''If a party does not pay '''<br> | ||
extent provided for in the relevant Confirmation or elsewhere in this Agreement. '''If a party does not pay ''' | '''any amount that, but for Section {{isdaprov|2(a)(iii)}}, would have been payable, it will, to the extent permitted by'''<br> | ||
'''any amount that, but for Section 2(a)(iii), would have been payable, it will, to the extent permitted by''' | '''applicable law and subject to Section {{isdaprov|6(c)}}, pay interest (before as well as after judgment) on that'''<br> | ||
'''applicable law and subject to Section 6(c), pay interest (before as well as after judgment) on that''' | '''amount to the other party on demand (after such amount becomes payable) in the same currency as the amount,'''<br> | ||
'''amount to the other party on demand (after such amount becomes payable) in the same currency as the amount,''' | '''for the period from (and including) the date the amount would, but for Section {{isdaprov|2(a)(iii)}}, have been payable'''<br> | ||
'''for the period from (and including) the date the amount would, but for Section 2(a)(iii), have been payable''' | '''to (but excluding) the date the amount actually becomes payable, at the rate certified by the payer to be a'''<br> | ||
'''to (but excluding) the date the amount actually becomes payable, at the rate certified by the payer to be a''' | '''rate offered to the payer by a major bank in a relevant interbank market for overnight deposits in the'''<br> | ||
'''rate offered to the payer by a major bank in a relevant interbank market for overnight deposits in the''' | '''applicable currency, such bank to be selected in good faith by the payer for the purpose of obtaining'''<br> | ||
'''applicable currency, such bank to be selected in good faith by the payer for the purpose of obtaining''' | '''a representative rate that will reasonably reflect conditions prevailing at the time in that relevant market.'''|2(e|1992}} | ||
'''a representative rate that will reasonably reflect conditions prevailing at the time in that relevant market.''' | |||
===Additional {{isdaprov|Definitions}} in Section 14=== | ===Additional {{isdaprov|Definitions}} in Section 14=== | ||