Template:Isda 5(a)(vii) summ: Difference between revisions

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There are two differences between the {{1992ma}} and {{2002ma}} definitions of Bankruptcy.
The truncating the [[grace period]] from 30 days in the {{1992ma}} to 15 days in the {{2002ma}} has, in aggregate over the whole global market, kept many a [[negotiator]] in “meaningful” employment. It has also been a large reason why many organisations did not move to the {{2002ma}} and of those who eventually did organisations whom you’d think would know better — then set about amending these [[grace period]]s back to the {{1992ma}} standard of 30 days or better still, insisted on sticking with the {{1992ma}}, but upgrading every part of it to the {{2002ma}} ''except'' for the {{{{{1}}}|Bankruptcy}} and {{{{{1}}}|Failure to Pay}} [[grace period]]s. A spectacular use of ostensibly limited resources, and an insight into whose benefit organisations really operate for.  
 
First, the {{2002ma}} has a slightly more specific concept of “insolvency”. In limb 4 ('''insolvency proceedings''') a new limb (A) has been included to cover action taken by an entity-specific regulator or supervisor (as opposed to a common or garden insolvency proceeding): If initiated by a regulator, the game’s up as soon as the action is taken. If initiated by a random creditor, the action must have resulted in a winding-up order, or at least not have been discharged in ''15'' (not 30) days.
Second, and unnervingly for those of little faith in their own accounts payble departments, the [[grace period]] in which one must arrange the dismissal of a vexations or undeserving insolvency petition (under {{{{{1}}}|5(a)(vii)}}(4)) or the exercise of security over assets (under {{{{{1}}}|5(a)(vii)}}(7)) is compressed from 30 days to 15 days. This, in aggregate over the whole global market, keeps many a [[negotiator]] in “meaningful” employment, has been a large reason why many organisations did not move to the {{2002ma}} and of those who eventually did, you will see many large organisations, whom you’d think would know better, amending these [[grace period]]s back to the {{1992ma}} standard of 30 days or better still, insisting on sticking with a {{1992ma}}, but upgrading every part of it to the {{2002ma}} ''except'' for the {{{{{1}}}|Bankruptcy}} and {{{{{1}}}|Failure to Pay}} [[grace period]]s. This is a simply spectacular use of ostensibly limited resources.


=====Regional bankruptcy variations=====
=====Regional bankruptcy variations=====

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