Hierarchy of Events - ISDA Provision: Difference between revisions

Hierarchy of Events - ISDA Provision (view source)

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 {{isdaanat|5(c)}}
-What to do if the same thing counts as an {{isdaprov|Illegality}} [[and/or]] a F{{isdaprov|orce Majeure Event}} ''and'' an {{isdaprov|Event Default}} [[and/or]] a Termination Event.
+In which the [[JC]] thinks he might have found a ''bona fide'' use for the awful legalism “[[and/or]]”. Crikey.
+What to do if the same thing counts as an {{isdaprov|Illegality}} [[and/or]] a {{isdaprov|Force Majeure Event}} ''and'' an {{isdaprov|Event of Default}} [[and/or]] a {{isdaprov|Termination Event}}.
+Why do we need this? Remember an {{isdaprov|Event of Default}} is an apocalyptic disaster scenario which blows your whole agreement up with extreme prejudice; a {{isdaprov|Termination Event}} is just “one of those things” which justifies termination, but may relate only to a single transaction: it isn’t something one needs necessarily to hang one’s head about.
+A {{isdaprov|Force Majeure Event}} is something that is so beyong one’s control or expectation that it shouldn't count as an {{isdaprov|Event of Default}} or even a {{isdaprov|Termination Event}} ''at all''.
-In which the [[JC]] thinks he might have found a ''bona fide'' use for the awful legalism “[[and/or]]”. Crikey.
+An Event of Default has more severe consequences for the [[counterparty]]. Well, the whole point about force majeure is that it is meant to give you an excuse not to perform your agreement.  and an Illegality is only a Termination Event (one can’t be criticised if they go and change the law on you, can one?), so
+{{seealso}}
+*[[Force majeure]] (wherein for a giggle you will find a sample ultimate force majeure clause)
+*[[Event of default]]
+*[[Termination event]]