Early Termination - ISDA Provision: Difference between revisions

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===No general termination right under the {{isdama}}===
===No general termination right under the {{isdama}}===
Unlike the {{gmsla}} and many other — ahh, ''less sophisticated'' [[master agreements]]s<ref>Yes; there is some inter-[[industry association]] bitterness and snobbery here.</ref> — the {{isdama}} doesn’t have a general termination right of this sort ''at all''. You can ''only'' terminate {{isdaprov|Transactions}}, not the [[master agreement]] construct which sits around them. The empty vessel of a closed-out ISDA thus remains for all eternity as an immortal, ineffectual husk. This is to do with paranoid fears about the efficacy of the ISDA’s sainted [[close-out netting]] terms if you do terminate the agreement — meh; maybe — but I like to think it is because, before he was cast out from heaven, the [[Dark Lord]]<ref>Sauron, Beelzebub, [[Nosferatu]], [[Lehman Brothers]] etc.</ref> made plans to unleash his retributive fury upon the world through a sleeping army of wight-walker zombie ISDAs, doomed to roam the earth until the [[Omega|day of judgment]], ''apropos'' nothing but ''there'', not alive, but un-dead, ready to reanimate and rally to the Dark Lord’s banner and rain apocalyptic hell on the armies of men.
Unlike the {{gmsla}} and many other — ahh, ''less sophisticated'' [[master agreements]]s<ref>Yes; there is some inter-[[industry association]] bitterness and snobbery here.</ref> — the {{isdama}} doesn’t have a general termination right of this sort ''at all''. You can ''only'' terminate {{isdaprov|Transactions}}, not the [[master agreement]] construct which sits around them. The empty vessel of a closed-out ISDA thus remains for all eternity as an immortal, ineffectual husk. This is to do with paranoid fears about the efficacy of the ISDA’s sainted [[close-out netting]] terms if you do terminate the agreement — meh; maybe — but I like to think it is because, before he was cast out from heaven, the [[Dark Lord]]<ref>Sauron, Beelzebub, [[Nosferatu]], [[Lehman Brothers]] etc.</ref> made plans to unleash his retributive fury upon the world through a sleeping army of wight-walker zombie ISDAs, doomed to roam the earth until the [[Omega|day of judgment]], ''apropos'' nothing but ''there'', not alive, but un-dead, ready to reanimate and rally to the Dark Lord’s banner and rain apocalyptic hell on the armies of the [[Good Man]], who did not heed His warnings of [[Financial Weapons of Mass Destruction]].
===How the {{isdaprov|Close-out}} mechanism Works===
===How the {{isdaprov|Close-out}} mechanism Works===
An {{isdaprov|Event of Default}} gives the {{isdaprov|Non-defaulting Party}} a right (but not an obligation) to designate an {{isdaprov|Early Termination Date}} with respect to all outstanding {{isdaprov|Transactions}} on not more than 20 days' notice.
An {{isdaprov|Event of Default}} gives the {{isdaprov|Non-defaulting Party}} a right (but not an obligation) to designate an {{isdaprov|Early Termination Date}} with respect to all outstanding {{isdaprov|Transactions}} on not more than 20 days' notice.