Section 2(a)(iii) - ISDA Provision: Difference between revisions

#'''Time Limit''': Will now be triggered by the {{isdaprov|Defaulting Party}}serving notice on the {{isdaprov|Non-defaulting Party}}. Bank of England, FSA and Fed all keen for the period to be short (UK had suggested 1 month).

#'''Gross/Net issue''': (per {{casenote|Lomas|Firth Rixson}} and {{casenote|Marine Trade|Pioneer}})

#'''Due Date Expiry issue''': (per [[Marine Trade]])

#'''Extinguishment issue''': (Firth Rixson) and the "Terminated Transaction" issue (per [[Pioneer v Cosco (Case Note)|Cosco]]).

#'''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.