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Section 2(a)(iii) - ISDA Provision: Difference between revisions
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Section 2(a)(iii) - ISDA Provision (view source)
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==Commentary== | |||
In a {{nutshell}}, section {{isdaprov|2(a)(iii)}} does the following: | |||
*Allows the {{isdaprov|Defaulting Party}} to notify of an {{isdaprov|Event of Default}} or {{isdaprov|Potential Event of Default}}. | |||
*That in turn starts the clock running on a period (to be agreed by the parties but likely to be no more than a month) in which the {{isdaprov|Non-defaulting Party}} has to decide what to do. During that period the {{isdaprov|Non-Defaulting Party}} retains its traditional right under {{isdaprov|2(a)(iii)}} to suspend payments under the {{isdama}}. | |||
*upon expiry of that period the {{isdaprov|Event of Default}} no longer qualifies as a [[condition precedent]] to payment under the Section 2(a)(iii), so if the {{isdaprov|Non-Defaulting Party}} has not exercised its right to terminate, it must resume performance of the transaction. | |||
{{isia}} | {{isia}} | ||
===Draft ISDA Section {{isdaprov|2(a)(iii)}} Protocol=== | ===Draft ISDA Section {{isdaprov|2(a)(iii)}} Protocol=== | ||
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{{isdaquote|{{ISDA Master Agreement 2002 Condition End Date Definition Protocol}}|Condition End Date Definition|2002}} | {{isdaquote|{{ISDA Master Agreement 2002 Condition End Date Definition Protocol}}|Condition End Date Definition|2002}} | ||
{{isdaanatomy}} | {{isdaanatomy}} | ||