Set-off - ISDA Provision: Difference between revisions

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Set-off - ISDA Provision (view source)

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=={{2002ma}}==
=={{2002ma}}==


(f) '''Set-Off'''. Any {{isdaprov|Early Termination Amount}} payable to one party (the “'''Payee'''”) by the other party (the “'''Payer'''”),
{{isdaquote|{{clause|ISDA|Master Agreement|2002|6(f)}}|6(f)|1992}}
in circumstances where there is a {{isdaprov|Defaulting Party}} or where there is one {{isdaprov|Affected Party}} in the case where either a
{{isdaprov|Credit Event Upon Merger}} has occurred or any other {{isdaprov|Termination Event}} in respect of which all outstanding {{isdaprov|Transaction}}s
are {{isdaprov|Affected Transaction}}s has occurred, will, at the option of the {{isdaprov|Non-defaulting Party}} or the {{isdaprov|Non-affected Party}}, as
the case may be (“X”) (and without prior notice to the Defaulting Party or the Affected Party, as the case may be), be
reduced by its set-off against any other amounts (“'''Other Amounts'''”) payable by the Payee to the Payer (whether or not
arising under this Agreement, matured or contingent and irrespective of the currency, place of payment or place of
booking of the obligation). To the extent that any Other Amounts are so set off, those Other Amounts will be discharged
promptly and in all respects. X will give notice to the other party of any set-off effected under this Section 6(f).
For this purpose, either the Early Termination Amount or the Other Amounts (or the relevant portion of such amounts)
may be converted by X into the currency in which the other is denominated at the rate of exchange at which such party
would be able, in good faith and using commercially reasonable procedures, to purchase the relevant amount of such
currency.
If an obligation is unascertained, X may in good faith estimate that obligation and set off in respect of the estimate,
subject to the relevant party accounting to the other when the obligation is ascertained.
Nothing in this Section 6(f) will be effective to create a charge or other security interest. This Section 6(f) will
be [[without prejudice]] and in addition to any right of [[set-off]], offset, combination of accounts, [[lien]], right of retention
or [[withholding]] or similar right or requirement to which any party is at any time otherwise entitled or subject (whether
by operation of law, contract or otherwise).
 


==Commentary==
==Commentary==
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