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1987 ISDA Interest Rate and Currency Exchange Agreement: Difference between revisions
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1987 ISDA Interest Rate and Currency Exchange Agreement (view source)
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there are some others - a helpful guide can be found [http://www.google.co.uk/url?sa=t&rct=j&q=difference%20between%201987%20isda%20and%201992%20isda&source=web&cd=6&ved=0CFYQFjAF&url=http%3A%2F%2Fwww.otcguide.com.au%2Fotcwr%2Fpdf%2F1573077_6.pdf&ei=3uwkUOSYOdOChQf71IGYCw&usg=AFQjCNGsjOd2eJW8xzQhB-xeglU_-EUuCA here] | there are some others - a helpful guide can be found [http://www.google.co.uk/url?sa=t&rct=j&q=difference%20between%201987%20isda%20and%201992%20isda&source=web&cd=6&ved=0CFYQFjAF&url=http%3A%2F%2Fwww.otcguide.com.au%2Fotcwr%2Fpdf%2F1573077_6.pdf&ei=3uwkUOSYOdOChQf71IGYCw&usg=AFQjCNGsjOd2eJW8xzQhB-xeglU_-EUuCA here] | ||
===Netting=== | |||
Generally speaking: | |||
*'''Physical Settlement''': given that the {{1987ma}} doesn't include physical delivery provisions, if you have any physically settled trades under it, you'd need to also add boilerplate language in the master to ensure the close-out mechanic worked for them, including consequential amendments to Sections 5 and 6 of the 1987 master. | |||
*'''Bankruptcy''': section 5(a)(vii) of the {{1987ma}} is loosely drafted and includes events whcih it may be difficult to determine with accuracy. (esp. subsections (2), (7), and (8). This may raise questions as to the enforceability of the second sentence of Section 6(a), which provides for the deemed occurrence of an {{isdaprov|Early Termination Date}} automatically upon the occurrence of an event falling within the Bankruptcy Event of Default. For example, although it will be clear when a petition for a winding up order has been filed, it will be unclear generally whether the deemed occurrence of the Early Termination Date took effect with respect to an event falling within sub-clause (2) at some time preceding the filing. | |||
{{isdaquote|{{clause|1987|ISDA|Interest Rate and Currency Exchange Agreement|5(a)(vii)}}|2|1987}} | |||
{{isdaanatomy}} | {{isdaanatomy}} | ||