Template:2014 ISDA Credit Derivatives Definitions 1: Difference between revisions

'''Section {{cddprov|1.32}} {{cddprov|Credit Event Notice}}'''. “'''{{cddprov|Credit Event Notice}}'''” means an irrevocable notice from a {{cddprov|Notifying Party}} to the other party that describes a {{cddprov|Credit Event}} that occurred on or after the {{cddprov|Credit Event Backstop Date}} and on or prior to the Extension Date.<br>

Any {{cddprov|Credit Event Notice}} that describes a {{cddprov|Credit Event}} that occurred after the {{cddprov|Scheduled Termination Date}} must relate to the relevant Potential {{cddprov|Failure to Pay}}, in the case of a {{cddprov|Grace Period Extension Date}}, or the relevant {{cddprov|Potential Repudiation/Moratorium}}, in the case of a {{cddprov|Repudiation/Moratorium Evaluation Date}}. A {{cddprov|Credit Event Notice}} that describes a {{cddprov|Credit Event}} other than an {{cddprov|M(M)R Restructuring}}} must be in respect of the full {{cddprov|Floating Rate Payer Calculation Amount}}. A {{cddprov|Credit Event Notice}} must contain a description in reasonable detail of the facts relevant to the determination that a {{cddprov|Credit Event}} has occurred. The {{cddprov|Credit Event}} that is the subject of the {{cddprov|Credit Event Notice}} need not be continuing on the date the {{cddprov|Credit Event Notice}} is effective. A form of {{cddprov|Credit Event Notice}} is set forth in Exhibit B.<br>

:(a) a {{cddprov|Notifying Party}} may deliver multiple {{cddprov|Credit Event Notice}}s with respect to such {{cddprov|M(M)R Restructuring}}, each such {{cddprov|Credit Event Notice}} setting forth the amount of the {{cddprov|Floating Rate Payer Calculation Amount}} to which such {{cddprov|Credit Event Notice}} applies (the “'''{{cddprov|Exercise Amount}}'''”), provided that if the {{cddprov|Credit Event Notice}} does not specify an Exercise Amount, the full {{cddprov|Floating Rate Payer Calculation Amount}} will be deemed to have been specified as the Exercise Amount;<br>

:(b) if the {{cddprov|Notifying Party}} has delivered a {{cddprov|Credit Event Notice}} that specifies an Exercise Amount that is less than the {{cddprov|Floating Rate Payer Calculation Amount}}, the rights and obligations of the parties shall, with effect from the date such {{cddprov|Credit Event Notice}} is effective, be construed as if the parties had entered into two {{cddprov|Credit Derivative Transaction}}s, one of which has a {{cddprov|Floating Rate Payer Calculation Amount}} equal to the Exercise Amount and, upon the occurrence of an {{cddprov|Event Determination Date}}, will be settled in accordance with the applicable {{cddprov|Settlement Method}} or {{cddprov|Fallback Settlement Method}}, as applicable, and the other of which will have a {{cddprov|Floating Rate Payer Calculation Amount}} equal to the {{cddprov|Floating Rate Payer Calculation Amount}} outstanding prior to such {{cddprov|Credit Event Notice}} minus the Exercise Amount and will continue in effect with such modifications as the {{cddprov|Calculation Agent}} (in consultation with the parties) shall determine are required in order to preserve the economic effects of the two {{cddprov|Credit Derivative Transaction}}s (considered in aggregate); and<br>