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Termination Events - ISDA Provision (view source)
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{{fullanatopen|isda|{{ISDA 1992 Section 5 TOC}}}} | |||
==Termination Events and Events of Default== | ==Termination Events and Events of Default== | ||
{{isdaprov|Termination Events}} and {{isdaprov|Events of Default}} under an {{isdama}} are similar in that when they occur to one party (the {{isdaprov|Affected Party}} or {{isdaprov|Defaulting Party}}) the other may terminate outstanding trades under the agreement. A crucial difference between them is that events of default may give rise to third-party default rights (where the relevant {{isdaprov|Cross Default}} extends to derivatives and trading documents) but generally termination events under an ISDA Master Agreement with another dealer will not. | {{isdaprov|Termination Events}} and {{isdaprov|Events of Default}} under an {{isdama}} are similar in that when they occur to one party (the {{isdaprov|Affected Party}} or {{isdaprov|Defaulting Party}}) the other may terminate outstanding trades under the agreement. A crucial difference between them is that events of default may give rise to third-party default rights (where the relevant {{isdaprov|Cross Default}} extends to derivatives and trading documents) but generally termination events under an ISDA Master Agreement with another dealer will not. | ||
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==={{t|Trick for young players}}: {{isdaprov|Force Majeure Event}}=== | ==={{t|Trick for young players}}: {{isdaprov|Force Majeure Event}}=== | ||
Note that the {{2002ma}} includes a {{isdaprov|Force Majeure Event}}, using language that was already agreed and widely inserted into the {{1992ma}} Schedule prior to its publication. Because this was entered as Section 5(b)(ii), this necessitates some numbering differences between the two versions of the {{isdama}} - a drafting [[trick for young players]] to watch out for. | Note that the {{2002ma}} includes a {{isdaprov|Force Majeure Event}}, using language that was already agreed and widely inserted into the {{1992ma}} Schedule prior to its publication. Because this was entered as Section 5(b)(ii), this necessitates some numbering differences between the two versions of the {{isdama}} - a drafting [[trick for young players]] to watch out for. | ||
==Subsections to Section 5(b) {{isdama}}== | ==Subsections to Section 5(b) {{isdama}}== | ||
:(b) {{isdaprov|Termination Events}} | :(b) {{isdaprov|Termination Events}} | ||