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Bankruptcy - ISDA Provision: Difference between revisions
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*[[Swiss Bankruptcy Language|Switzerland]] | *[[Swiss Bankruptcy Language|Switzerland]] | ||
====Market standard==== | ====Market standard==== | ||
The ISDA {{isdaprov|bankruptcy}} definition is rarely a source of great controversy (except for the [[grace period]], as to which see below, which gets negotiated only through custom amongst ISDA negotiators because, in its wisdom, [[ISDA]] thought fit to change it in the {{2002ma}}. So you have a sort of pas-de-deux between negotiators where they argue about it for a while before getting tired, being shouted at by their business people, and moving on to something more important to argue about, like {{isdaprov|Cross Default}} | The ISDA {{isdaprov|bankruptcy}} definition is rarely a source of great controversy (except for the [[grace period]], as to which see below, which gets negotiated only through custom amongst ISDA negotiators because, in its wisdom, [[ISDA]] thought fit to change it in the {{2002ma}}. So you have a sort of pas-de-deux between negotiators where they argue about it for a while before getting tired, being shouted at by their business people, and moving on to something more important to argue about, like {{isdaprov|Cross Default}}<ref>This, by the way, is an [[ISDA]] In-joke. In fact, {{isdaprov|Cross Default}} is pretty much pointless, a fact that every [[Mediocre lawyer|ISDA lawyer]] knows, but none will admit on the record.</ref>.) | ||
Otherwise the ISDA ''bankruptcy'' clause is a much loved and well used market standard and you often see it being imported into other agreements precisely because everyone knows it and no one really argues about it. | Otherwise the ISDA ''{{isdaprov|bankruptcy}}'' clause is a much loved and well used market standard and you often see it being imported into other agreements precisely because everyone knows it and no one really argues about it. | ||
====[[Grace period]]==== | ====[[Grace period]]==== | ||
Note the contraction of the [[grace period]] from 30 days to 15 days between the {{1992ma}} and the {{2002ma}}. Note also, for students of history, the problematic {{isdaprov|Automatic Early Termination}} situation under the {{1987ma}}. | Note the contraction of the [[grace period]] from 30 days to 15 days between the {{1992ma}} and the {{2002ma}}. Note also, for students of history, the problematic {{isdaprov|Automatic Early Termination}} situation under the {{1987ma}}. | ||