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Exchanges - CSA Provision: Difference between revisions
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{{ | {{fullanat2|csa|3(c)|2016|3(c)1995}} | ||
Note here the {{csaprov|Transferor}} can ask for an exchange, but the {{csaprov|Transferee}} is not obliged to accept it. This is a fundamental provision of "title transfer" - once the {{csaprov|Eligible Credit Support}} is delivered under a {{1995csa}}, it is owned absolutely by the {{csaprov|Transferee}}, subject only to an obligation to return {{csaprov|Equivalent Credit Support}}. | Note here the {{csaprov|Transferor}} can ask for an exchange, but the {{csaprov|Transferee}} is not obliged to accept it. This is a fundamental provision of "title transfer" - once the {{csaprov|Eligible Credit Support}} is delivered under a {{1995csa}}, it is owned absolutely by the {{csaprov|Transferee}}, subject only to an obligation to return {{csaprov|Equivalent Credit Support}}. | ||
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'''{{csaprov|Delivery Amount}}s''': Contrast this with {{csaprov|Delivery Amounts}}, where a {{csaprov|Transferor}} has the option to deliver the cheapest of the {{csaprov|Eligible Credit Support}} specified in the {{1995csa}}. | '''{{csaprov|Delivery Amount}}s''': Contrast this with {{csaprov|Delivery Amounts}}, where a {{csaprov|Transferor}} has the option to deliver the cheapest of the {{csaprov|Eligible Credit Support}} specified in the {{1995csa}}. | ||
'''Return | '''{{csaprov|Return Amount}}s''': A {{csaprov|Transferee}} does have a (limited) option in terms of selecting the Return Amount should there be a requirement to return posted credit support - it can select the cheapest to deliver of all the {{csaprov|Eligible Credit Support}} that has been posted to it which currently comprises its {{csaprov|Credit Support Balance}}. | ||