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Template:M gen 2002 ISDA 3(g): Difference between revisions
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Amwelladmin (talk | contribs) (Created page with "===Internal agency model=== It is not beyond the paranoid fantasies of a US tax attorney — a rich, baroque tapestry indeed — to want to “deem” a swap counterpa...") |
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It is not beyond the paranoid fantasies of a US [[tax attorney]] — a rich, baroque tapestry indeed — to want to “[[deem]]” a swap counterparty to be an agent for one of its affiliates for certain — you know, ''tax'' — purposes, even though the [[affiliate]] is not mentioned in the [[contract]] and the other side has not the first clue that this [[affiliate]] even exists. | It is not beyond the paranoid fantasies of a US [[tax attorney]] — a rich, baroque tapestry indeed — to want to “[[deem]]” a swap counterparty to be an agent for one of its affiliates for certain — you know, ''tax'' — purposes, even though the [[affiliate]] is not mentioned in the [[contract]] and the other side has not the first clue that this [[affiliate]] even exists. | ||
How does this bear on your Section {{isdaprov|no agency | How does this bear on your Section {{isdaprov|no agency}} [[representation]]? As far as your counterparty is concerned, not at all: a fellow acting under an [[agency]] he has not disclosed to his counterpart is called a “[[principal]]”. This is all the {{isdaprov|no agency}} [[representation]] is meant to confirm: [[for the avoidance of doubt]] — of which there wasn’t much anyway — you are not acting on behalf of someone else. Therefore, should you not perform our contract, I can bring my claim against you; you cannot slip out of the tackle by pointing to some under-capitalised [[espievie]] in a banana republic I didn’t know about whom you suddenly claim to be representing. I can therefore safely instruct my [[credit officer]] that the only commercial ''bona fides'' she needs to have in mind, as she slips on her rubber gloves, are yours. | ||
It doesn’t matter whether the [[agency]] arrangement exists or not: either way, you are liable, as a [[principal]], to me, it is your problem to recover any money you may be owed by your man in Havana. | It doesn’t matter whether the [[agency]] arrangement exists or not: either way, you are liable, as a [[principal]], to me, it is your problem to recover any money you may be owed by your man in Havana. | ||
Now whether such a [[representation]] undermines the fantastical aspirations of your [[tax attorney]], on the other hand, is a question only he can answer. | Now whether such a [[representation]] undermines the fantastical aspirations of your [[tax attorney]], on the other hand, is a question only he can answer. | ||