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Template:ISDA English Law Credit Support Annex 1995 4(a): Difference between revisions
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Template:ISDA English Law Credit Support Annex 1995 4(a) (view source)
Revision as of 15:22, 17 October 2012
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Amwelladmin (talk | contribs) (Created page with "{{csaprov|4(a)}} {{csaprov|Disputed Calculations or Valuations}}. If a party (a "{{csaprov|Disputing Party}}") reasonably disputes (I) the <br>{{csaprov|Valuation Agent}}’s ...") |
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{{csaprov|4(a)}} {{csaprov|Disputed Calculations or Valuations}}. If a party (a "{{csaprov|Disputing Party}}") reasonably disputes (I) the <br>{{csaprov|Valuation Agent}}’s calculation of a {{csaprov|Delivery Amount}} or a {{csaprov|Return Amount}} or (II) the {{csaprov|Value}} of any transfer <br>of {{csaprov|Eligible Credit Support}} or {{csaprov|Equivalent Credit Support}}, then:<br> | {{csaprov|4(a)}} {{csaprov|Disputed Calculations or Valuations}}. If a party (a "{{csaprov|Disputing Party}}") reasonably disputes (I) the <br>{{csaprov|Valuation Agent}}’s calculation of a {{csaprov|Delivery Amount}} or a {{csaprov|Return Amount}} or (II) the {{csaprov|Value}} of any transfer <br>of {{csaprov|Eligible Credit Support}} or {{csaprov|Equivalent Credit Support}}, then:<br> | ||
:(1) the {{csaprov|Disputing Party}} will notify the other party and the {{csaprov|Valuation Agent}} (if the Valuation <br>Agent is not the other party) not later than the close of business on the {{csaprov|Local Business Day}} following, in the case of (I) above, the date that the demand is received under Paragraph {{csaprov|2}} or, in the <br>case of (II) above, the date of transfer;<br> | :(1) the {{csaprov|Disputing Party}} will notify the other party and the {{csaprov|Valuation Agent}} (if the Valuation <br>Agent is not the other party) not later than the close of business on the {{csaprov|Local Business Day}} <br>following, in the case of (I) above, the date that the demand is received under Paragraph {{csaprov|2}} or, in the <br>case of (II) above, the date of transfer;<br> | ||
:(2) in the case of (I) above, the appropriate party will transfer the undisputed amount to the <br>other party not later than the close of business on the <brSettlement Day> following the date that the <br>demand is received under Paragraph {{csaprov|2}}; | :(2) in the case of (I) above, the appropriate party will transfer the undisputed amount to the <br>other party not later than the close of business on the <brSettlement Day> following the date that the <br>demand is received under Paragraph {{csaprov|2}}; | ||
:(3) the parties will consult with each other in an attempt to resolve the dispute; and<br> | :(3) the parties will consult with each other in an attempt to resolve the dispute; and<br> | ||
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::(i) in the case of a dispute involving a {{csaprov|Delivery Amount}} or {{csaprov|Return Amount}}, unless <br>otherwise specified in Paragraph {{csaprov|11(c)}}, the {{csaprov|Valuation Agent}} will recalculate the {{csaprov|Exposure}} <br>and the {{csaprov|Value}} as of the {{csaprov|Recalculation Date}} by: | ::(i) in the case of a dispute involving a {{csaprov|Delivery Amount}} or {{csaprov|Return Amount}}, unless <br>otherwise specified in Paragraph {{csaprov|11(c)}}, the {{csaprov|Valuation Agent}} will recalculate the {{csaprov|Exposure}} <br>and the {{csaprov|Value}} as of the {{csaprov|Recalculation Date}} by: | ||
:::(A) utilising any calculations of that part of the {{csaprov|Exposure}} attributable to the <br>{{isdaprov|Transactions}} that the parties have agreed are not in dispute;<br> | :::(A) utilising any calculations of that part of the {{csaprov|Exposure}} attributable to the <br>{{isdaprov|Transactions}} that the parties have agreed are not in dispute;<br> | ||
:::(B) calculating that part of the {{csaprov|Exposure}} attributable to the {{isdaprov|Transactions}} in <br>dispute by seeking four actual quotations at mid-market from | :::(B) calculating that part of the {{csaprov|Exposure}} attributable to the {{isdaprov|Transactions}} in <br>dispute by seeking four actual quotations at mid-market from Reference Market-<br>makers for purposes of calculating {{isdaprov|Market Quotation}}, and taking the arithmetic <br>average of those obtained; provided that if four quotations are not available for a <br>particular {{isdaprov|Transaction}}, then fewer than four quotations may be used for that <br>{{isdaprov|Transaction}}, and if no quotations are available for a particular {{isdaprov|Transaction}}, then <br>the {{csaprov|Valuation Agent}}’s original calculations will be used for the {{isdaprov|Transaction}}; and<br> | ||
particular {{isdaprov|Transaction}}, then fewer than four quotations may be used for that <br>{{isdaprov|Transaction}}, and if no quotations are available for a particular {{isdaprov|Transaction}}, then <br>the {{csaprov|Valuation Agent}}’s original calculations will be used for the {{isdaprov|Transaction}}; and<br> | |||
:::(C) utilising the procedures specified in Paragraph {{csaprov|11(e)(ii)}} for calculating the <br>{{csaprov|Value}}, if disputed, of the outstanding {{csaprov|Credit Support Balance}};<br> | :::(C) utilising the procedures specified in Paragraph {{csaprov|11(e)(ii)}} for calculating the <br>{{csaprov|Value}}, if disputed, of the outstanding {{csaprov|Credit Support Balance}};<br> | ||
::(ii) in the case of a dispute involving the {{csaprov|Value}} of any transfer of Eligible Credit <br>Support or {{csaprov|Equivalent Credit Support}}, the {{csaprov|Valuation Agent}} will recalculate the {{csaprov|Value}} as of <br>the date of transfer pursuant to Paragraph {{csaprov|11(e)(ii)}}.<br> | ::(ii) in the case of a dispute involving the {{csaprov|Value}} of any transfer of Eligible Credit <br>Support or {{csaprov|Equivalent Credit Support}}, the {{csaprov|Valuation Agent}} will recalculate the {{csaprov|Value}} as of <br>the date of transfer pursuant to Paragraph {{csaprov|11(e)(ii)}}.<br> | ||
Following a recalculation pursuant to this Paragraph, the {{csaprov|Valuation Agent}} will notify each party (or the <br>other party, if the {{csaprov|Valuation Agent}} is a party) as soon as possible but in any event not later than the <br>{{csaprov|Notification Time}} on the {{csaprov|Local Business Day}} following the {{csaprov|Resolution Time}}. The appropriate party will, <br>upon demand following such notice given by the {{csaprov|Valuation Agent}} or a resolution pursuant to (3) above and <br>subject to Paragraph {{csaprov|3(a)}}, make the appropriate transfer. | Following a recalculation pursuant to this Paragraph, the {{csaprov|Valuation Agent}} will notify each party (or the <br>other party, if the {{csaprov|Valuation Agent}} is a party) as soon as possible but in any event not later than the <br>{{csaprov|Notification Time}} on the {{csaprov|Local Business Day}} following the {{csaprov|Resolution Time}}. The appropriate party will, <br>upon demand following such notice given by the {{csaprov|Valuation Agent}} or a resolution pursuant to (3) above and <br>subject to Paragraph {{csaprov|3(a)}}, make the appropriate transfer. | ||