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Section 2(a)(iii) - ISDA Provision: Difference between revisions
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Text replace - "}"" to "}'''""
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The revised language raises a few concerns. | The revised language raises a few concerns. | ||
#'''Incurable {{isdaprov|Events of Default}}''': [[ISDA]] was looking to apply the time restriction only in respect of "incurable" {{isdaprov|Events of Default}}". Not actually sure the list was sufficiently comprehensive to achieve that. Others have suggested to limit to {{isdaprov|Bankruptcy}}. Anyway, does not matter because none of that works under English law for capital reasons and so [[ISDA]] will be changing to apply the language to all {{isdaprov|Events of Default}} ([[FSA]] will require this). | #'''Incurable {{isdaprov|Events of Default}}''': [[ISDA]] was looking to apply the time restriction only in respect of "incurable" {{isdaprov|Events of Default}}'''". Not actually sure the list was sufficiently comprehensive to achieve that. Others have suggested to limit to {{isdaprov|Bankruptcy}}. Anyway, does not matter because none of that works under English law for capital reasons and so [[ISDA]] will be changing to apply the language to all {{isdaprov|Events of Default}} ([[FSA]] will require this). | ||
#The language is problematic where, for example, a {{isdaprov|Defaulting Party}} informs the {{isdaprov|Non-defaulting Party}} of a {{isdaprov|Misrepresentation}}. {{isdaprov|Non-defaulting Party}} waives the misrep and then the "defaulter" experiences a {{isdaprov|Default Under Specified Transaction}}. Would leave a gap on the CP. | #The language is problematic where, for example, a {{isdaprov|Defaulting Party}} informs the {{isdaprov|Non-defaulting Party}} of a {{isdaprov|Misrepresentation}}. {{isdaprov|Non-defaulting Party}} waives the misrep and then the "defaulter" experiences a {{isdaprov|Default Under Specified Transaction}}. Would leave a gap on the CP. | ||
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'''and which remains unpaid as at such {{isdaprov|Early Termination Date}}.'''<br> | '''and which remains unpaid as at such {{isdaprov|Early Termination Date}}.'''<br> | ||
<br> | <br> | ||
'''"'''{{isdaprov|Condition End Date}}" means the first {{isdaprov|Local Business Day}} after the date falling [ ] days after notice'''<br> | '''"'''{{isdaprov|Condition End Date}}'''" means the first {{isdaprov|Local Business Day}} after the date falling [ ] days after notice'''<br> | ||
'''is given by the {{isdaprov|Defaulting Party}} to the {{isdaprov|Non-defaulting Party}} that an {{isdaprov|Event of Default}} [specified in Section'''<br> | '''is given by the {{isdaprov|Defaulting Party}} to the {{isdaprov|Non-defaulting Party}} that an {{isdaprov|Event of Default}} [specified in Section'''<br> | ||
'''{{isdaprov|5(a)(iv)}}, {{isdaprov|5(a)(v)}}, {{isdaprov|5(a)(vi)}} or {{isdaprov|5(a)(vii)}}] or[, in the case of Section {{isdaprov|5(a)(vii)(4)}},] {{isdaprov|Potential Event of Default}}'''<br> | '''{{isdaprov|5(a)(iv)}}, {{isdaprov|5(a)(v)}}, {{isdaprov|5(a)(vi)}} or {{isdaprov|5(a)(vii)}}] or[, in the case of Section {{isdaprov|5(a)(vii)(4)}},] {{isdaprov|Potential Event of Default}}'''<br> | ||