Additional Termination Event - ISDA Provision: Difference between revisions

Additional Termination Event - ISDA Provision (view source)

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 {{isdaanat|5(b)(vi)}}
 {{ISDAnumberingdiscrepancy}}
+Any other termination event your Credit department might have dreamt up that didn’t occur to the framers of the {{isdama}} — or, at any rate, wasn’t sufficiently universal to warrant being included in the master agreement for all. Common ones include:
+*[[NAV trigger|NAV triggers]] (for [[Hedge fund|hedge funds]])
+*[[Key man]] provisions (for [[Hedge fund|hedge funds]])
+*[[Investment manager]] insolvency or loss of licence
+*Parent divestment (where counterparty is a financing subsidiary)
+The ATEs are likely to be the most haggled-over part of your {{isdama}}.
+There is a school of thought that this serves the interests of the [[Negotiator|Ancient Guild of Contract Negotiators]] and the [[Credit officer|Worshipful Company of Credit Officers]] more than it does the shareholders of the institutions for whom these people ply their trade, for in these days of [[Threshold - CSA Provision|zero-threshold]] [[CSA|CSAs]], the real credit protections in the ISDA are the standard {{isdaprov|Events of Default}} (especially {{isdaprov|Failure to Pay or Deliver}} and {{isdaprov|Bankruptcy}}),
 ==={{t|Trick for young players}}===
 {{isdaprov|Termination Event}} is defined as “an {{isdaprov|Illegality}}, a {{isdaprov|Tax Event}} or a {{isdaprov|Tax Event Upon Merger}} or, if specified to be applicable, a {{isdaprov|Credit Event Upon Merger}} or an {{isdaprov|Additional Termination Event}}”.