Template:2014 ISDA Credit Derivatives Definitions 3.13: Difference between revisions

:::(A) “'''{{cddprov|Not Subordinated}}'''” means an obligation that is not Subordinated to (I) the {{cddprov|Reference Obligation}} or (II) the Prior {{cddprov|Reference Obligation}}, if applicable;<br>

:::(B) “'''{{cddprov|Subordination}}'''” means, with respect to an obligation (the “'''{{cddprov|Second Obligation}}'''”) and another obligation of the {{cddprov|Reference Entity}} to which such obligation is being compared (the “'''{{cddprov|First Obligation}}'''”), a contractual, trust or similar arrangement providing that (I) upon the liquidation, dissolution, reorganization or winding-up of the {{cddprov|Reference Entity}}, claims of the holders of the First Obligation are required to be satisfied prior to the claims of the holders of the Subordinated Second Obligation , or (II) the holders of the Second Obligation will not be entitled to receive or retain principal payments in respect of their claims against the {{cddprov|Reference Entity}} at any time that the {{cddprov|Reference Entity}} is in payment arrears or is otherwise in default under the First Obligation. “'''{{cddprov|Subordinated}}'''” will be construed accordingly. For purposes of determining whether Subordination exists or whether an obligation is Subordinated with respect to another obligation to which it is being compared, (x) the existence of preferred creditors arising by operation of law or of collateral, credit support or other credit enhancement or security arrangements shall not be taken into account, except that, notwithstanding the foregoing, priorities arising by operation of law shall be taken into account where the {{cddprov|Reference Entity}} is a Sovereign and (y) in the case of the {{cddprov|Reference Obligation}} or the {{cddprov|Prior Reference Obligation}}, as applicable, the ranking in priority of payment shall be determined as of the date as of which it was issued or incurred (or in circumstances where the {{cddprov|Reference Obligation}}  or a {{cddprov|Prior Reference Obligation}} is the {{cddprov|Standard Reference Obligation}} and “'''{{cddprov|Standard Reference Obligation}}'''” is applicable, then the priority of payment of the {{cddprov|Reference Obligation}}  or the {{cddprov|Prior Reference Obligation}}, as applicable, shall be determined as of the date of selection) and, in each case, shall not reflect any change to such ranking in priority of payment after such date; and<br>

::(ii) “'''{{cddprov|Specified Currency}}'''” means an obligation that is payable in the currency or currencies specified as such in the related {{cddprov|Confirmation}} (or, if “'''{{cddprov|Specified Currency}}'''” is specified in a {{cddprov|Confirmation}} and no currency is so specified, any {{cddprov|Standard Specified Currency}}), provided that if the euro is a {{cddprov|Specified Currency}}, “'''{{cddprov|Specified Currency}}'''” shall also include an obligation that was previously payable in the euro, regardless of any redenomination thereafter if such redenomination occurred as a result of action taken by a {{cddprov|Governmental Authority}} of a Member State of the European Union which is of general application in the jurisdiction of such {{cddprov|Governmental Authority}};<br>

::(iii) “'''{{cddprov|Not Sovereign Lender}}'''” means any obligation that is not primarily owed to (A) a Sovereign or (B) any entity or organization established by treaty or other arrangement between two or more Sovereigns including, without limiting the foregoing, the International Monetary Fund, European Central Bank, International Bank for Reconstruction and Development and European Bank for Reconstruction and Development, which shall include, without limitation, obligations generally referred to as “'''{{cddprov|Paris Club debt}}'''”;<br>