1987 ISDA Interest Rate and Currency Exchange Agreement: Difference between revisions

*'''Bankruptcy and Automatic Early Termination''': section 5(a)(vii) of the {{1987ma}} is loosely drafted and includes events which 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.

In contrast, {{isdaprov|Automatic Early Termination}} under the {{1992ma}} and {{2002ma}}, if elected, does not apply to those events that are uncertain as to the precise time of their occurrence. Therefore, the enforceability of {{isdaprov|Automatic Early Termination}} in the {{1992ma}} and the {{2002ma}} cannot be called into question on the basis of the uncertainty created by the inclusion of the events in the {{1992ma}} and {{2002ma}} equivalent to those in the {{1987ma}} referred to above.