Insolvency Filing - Equity Derivatives Provision: Difference between revisions

From the User's Guide:

'''{{eqderivprov|Insolvency Filing}}'''. Section {{eqderivprov|12.9(a)(iv)}} defines the third possible {{eqderivprov|Additional Disruption Event}}, {{eqderivprov|Insolvency Filing}}. Insolvency Filing is defined as an insolvency or bankruptcy proceeding instituted by the Issuer or a regulator, supervisor or similar official with primary insolvency or regulatory jurisdiction over the Issuer. An {{eqderivprov|Insolvency Filing}} should be distinguished from the much narrower definition of {{eqderivprov|Insolvency}} as set forth in Section {{eqderivprov|12.6(a)(ii)}}, discussed above. Unlike the comparable provision in the {{isdama}}, an {{eqderivprov|Insolvency Filing}} specified as an {{eqderivprov|Additional Disruption Event}} has no [[grace period]] associated with it and is not triggered by an involuntary filing by creditors (i.e., persons other than the {{eqderivprov|Issuer}} or a regulatory, supervisor or other sinlilar official) that has not been dismissed within 15 days.

Section {{eqderivprov|12.9(b)(i)}} sets forth the consequence of an {{eqderivprov|Insolvency Filing}}. As with {{eqderivprov|Change in Law}}, if an {{eqderivprov|Insolvency Filing}} occurs, either party may elect to terminate the {{eqderivprov|Transaction}} upon at least two {{eqderivprov|Scheduled Trading Days}}' notice to the other party. Upon the provision of such notice, the {{eqderivprov|Transaction}} will terminate and the {{eqderivprov|Determining Party}} will determine the {{eqderivprov|Cancellation Amount}} payable by one party to the other party.