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Accuracy of Specified Information - ISDA Provision: Difference between revisions
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Accuracy of Specified Information - ISDA Provision (view source)
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{{isdaanat|3(d)}} | {{isdaanat|3(d)}} | ||
Note that the {{isdaprov|3(d)}} representation, in the ISDA {{isdaprov|documents for delivery}} table in the {{isdaprov|Schedule}}, therefore covers only the accuracy, completeness of Specified Information and not (for example) whether it is delivered at all or not. For that, see Section {{isdaprov|4(a)}} - {{isdaprov|Furnish Specified Information}}. | The fabulous Section {{isdaprov|3(d)}} representation, giving one’s counterparty the right to close out should any so-designated representations turn out not to be true. This is sure to occupy an inordinate amount of your [[negotiation]] time — in that it occupies any time at all — because you are as likely to be hit in the face by a live flying starfish in the driest part of the Gobi Desert as you are to close out an ISDA because your counterparty is late preparing its annual accounts. [[Disclaimer|But that’s a personal view and you may not rely on it.]] | ||
Note that the {{isdaprov|3(d)}} representation, in the ISDA {{isdaprov|documents for delivery}} table in the {{isdaprov|Schedule}}, therefore covers only the accuracy, completeness of {{isdaprov|Specified Information}} and not (for example) whether it is delivered at all or not. For that, see Section {{isdaprov|4(a)}} - {{isdaprov|Furnish Specified Information}}. | |||
{{commonnegpoints}} | {{commonnegpoints}} | ||
Opposing negotiators may try to crowbar in something like this, to satisfy their yen to make a difference and please their clients with their acumen and commercial fortitude: | Opposing negotiators may try to crowbar in something like this, to satisfy their yen to make a difference and please their clients with their acumen and commercial fortitude: | ||
:''“or, in the case of financial information, a fair representation of the financial condition of the relevant party, provided that the other party may rely on any such information when determining whether an Additional | :''“or, in the case of financial information, a fair representation of the financial condition of the relevant party, provided that the other party may rely on any such information when determining whether an Additional Termination Event has occurred.”'' | ||
This is predicated on the following reasoning: “In publishing the audit, the auditor itself is not making any greater representation than that the statements are a fair representation of the financial conditions. I’m no accountant. I didn’t even write the stupid audit. How am I supposed to know? Why should I give any a stronger representation than the expert?” | This is predicated on the following reasoning: “In publishing the audit, the auditor itself is not making any greater representation than that the statements are a fair representation of the financial conditions. I’m no accountant. I didn’t even write the stupid audit. How am I supposed to know? Why should I give any a stronger representation than the expert?” | ||