Set-off - ISDA Provision: Difference between revisions

Set-off - ISDA Provision (view source)

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 ==Commentary==
-In a {{nutshell}}:
+{{nuts|ISDA|Set-off}}
-{{box|Without prejudice to its other rights, an {{isdaprov|Innocent Party}} may set-off any part of an {{isdaprov|Early Termination Amount}} (in respect of all outstanding {{isdaprov|Transactions}}) against any “Other Amounts” payable under any agreement between the parties. <br>
-To do so it may:
-*convert one such amount into the other’s currency at a commercially reasonable rate.
-*make a good faith estimate of any unascertained obligation, provided it accounts for any difference when such an amount is finally ascertained. <br>
-The Innocent Party must give notice of any set-off.<br>
-This clause does not create a charge or other security interest.}}
 ==={{1992ma}}===
 ISDA published a provision in the [[Users Guide]] but several bespoke versions of a set-off provision developed and were used in the market. These often provided for the inclusion of '''{{isdaprov|Affiliate}}s''' in relation to the {{isdaprov|Non-defaulting Party}} or {{isdaprov|Non-affected Party}}.