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Second Method - ISDA Provision: Difference between revisions
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The ''' Second Method''' is a method of determining the {{isdaprov|Termination Payment}} | {{fullanat|isda|Second Method|2002}} | ||
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}}. | |||
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. | 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. | ||
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===See also=== | ===See also=== | ||
*{{isdaprov|General Conditions}} - the ominous subject of Section {{isdaprov|2(a)(iii)}} and the [[Metavante]] case. | *{{isdaprov|General Conditions}} - the ominous subject of Section {{isdaprov|2(a)(iii)}} and the [[Metavante]] case. | ||
*{{isdaprov|Close-out Amount}} - the {{2002ma}} equivalent. | |||
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