2016 ISDA VM NY CSA: Difference between revisions

Accordingly, the parties agree as follows:—<br> Paragraph {{nyvmcsaprov|1}} '''{{nyvmcsaprov|Interpretation}}'''<br>

:{{nyvmcsaprov|1(a)}} '''{{nyvmcsaprov|Definitions and Inconsistency)}}'''. Capitalized terms not otherwise defined herein or elsewhere in this Agreement have the meanings specified pursuant to Paragraph {{nyvmcsaprov|12)}}, and all references in this Annex to Paragraphs are to Paragraphs of this Annex. In the event of any inconsistency between this Annex and the other provisions of this Schedule, this Annex will prevail, and in the event of any inconsistency between Paragraph {{nyvmcsaprov|13 }} and the other provisions of this Annex, Paragraph {{nyvmcsaprov|13 }} will prevail.<br>

:{{nyvmcsaprov|1(b)}} {{nyvmcsaprov|Secured Party and Pledgor}}. All references in this Annex to the “'''{{nyvmcsaprov|Secured Party}}'''” will be to either party when acting in that capacity and all corresponding references to the “'''{{nyvmcsaprov|Pledgor}}'''” will be to the other party when acting in that capacity; provided, however, that if {{nyvmcsaprov|Other Posted Support (VM)}} is held by a party to this Annex, all references herein to that party as the {{nyvmcsaprov|Secured Party}} with respect to that {{nyvmcsaprov|Other Posted Support (VM)}} will be to that party as the beneficiary thereof and will not subject that support or that party as the beneficiary thereof to provisions of law generally relating to security interests and secured parties.<br>

:{{nyvmcsaprov|1(c)}} {{nyvmcsaprov|Scope of this Annex and the Other CSA}}. The only {{isdaprov|Transaction)}}s which will be relevant for the purposes of determining “'''{{nyvmcsaprov|Exposure}}'''” under this Annex will be the {{nyvmcsaprov|Covered Transactions}} specified in Paragraph '''{{nyvmcsaprov|13}}'''. Each {{nyvmcsaprov|Other CSA}}, if any, is hereby amended such that the {{isdaprov|Transaction)}}s that will be relevant for purposes of determining “'''{{nyvmcsaprov|Exposure}}'''” thereunder, if any, will exclude the {{nyvmcsaprov|Covered Transactions}}. Except as provided in Paragraphs 8(a), 8(b) and 11(j), nothing in this Annex will affect the rights and obligations, if any, of either party with respect to “independent amounts” or initial margin under each {{nyvmcsaprov|Other CSA}}, if any, with respect to {{isdaprov|Transaction)}}s that are {{nyvmcsaprov|Covered Transactions}}.<br> Paragraph {{nyvmcsaprov|2}} '''{{nyvmcsaprov|Security Interest}}'''<br>

Each party, as the {{nyvmcsaprov|Pledgor}}, hereby pledges to the other party, as the {{nyvmcsaprov|Secured Party}}, as security for its {{isdaprov|Obligations}}, and grants to the {{nyvmcsaprov|Secured Party}} a first priority continuing security interest in, lien on and right of {{nyvmcsaprov|Set-off}} against all {{nyvmcsaprov|Posted Collateral (VM)}} {{nyvmcsaprov|Transfer}}red to or received by the {{nyvmcsaprov|Secured Party}} hereunder. Upon the {{nyvmcsaprov|Transfer}} by the {{nyvmcsaprov|Secured Party}} to the {{nyvmcsaprov|Pledgor}} of {{nyvmcsaprov|Posted Collateral (VM)}}, the security interest and lien granted hereunder on that {{nyvmcsaprov|Posted Collateral (VM)}} will be released immediately and, to the extent possible, without any further action by either party.<br> Paragraph {{nyvmcsaprov|3}} '''{{nyvmcsaprov|Credit Support Obligations}}''' <br>

:{{nyvmcsaprov|3(a)}} {{nyvmcsaprov|Delivery Amount (VM)}}. Subject to Paragraphs 4 and 5, upon a demand made by the {{nyvmcsaprov|Secured Party}} on or promptly following a {{nyvmcsaprov|Valuation Date}}, if the {{nyvmcsaprov|Delivery Amount (VM)}} for that {{nyvmcsaprov|Valuation Date}} equals or exceeds the {{nyvmcsaprov|Pledgor}}’s {{nyvmcsaprov|Minimum Transfer Amount}}, then the {{nyvmcsaprov|Pledgor}} will {{nyvmcsaprov|Transfer}} to the {{nyvmcsaprov|Secured Party}} {{nyvmcsaprov|Eligible Credit Support (VM)}} having a {{nyvmcsaprov|Value}} as of the date of {{nyvmcsaprov|Transfer}} at least equal to the applicable {{nyvmcsaprov|Delivery Amount (VM)}} (rounded pursuant to Paragraph {{nyvmcsaprov|13}}). Unless otherwise specified in Paragraph {{nyvmcsaprov|13}}, the “'''{{nyvmcsaprov|Delivery Amount (VM)}}'''” applicable to the {{nyvmcsaprov|Pledgor}} for any {{nyvmcsaprov|Valuation Date}} will equal the amount by which:<br>

(i) the {{nyvmcsaprov|Secured Party}}’s {{nyvmcsaprov|Exposure}} exceeds<br>

(ii) the {{nyvmcsaprov|Value}} as of that {{nyvmcsaprov|Valuation Date}} of all {{nyvmcsaprov|Posted Credit Support (VM)}} held by the {{nyvmcsaprov|Secured Party}}.<br>

:{{nyvmcsaprov|3(b)}} {{nyvmcsaprov|Return Amount (VM)}}. Subject to Paragraphs 4 and 5, upon a demand made by the {{nyvmcsaprov|Pledgor}} on or promptly following a {{nyvmcsaprov|Valuation Date}}, if the {{nyvmcsaprov|Return Amount (VM)}} for that {{nyvmcsaprov|Valuation Date}} equals or exceeds the {{nyvmcsaprov|Secured Party}}’s {{nyvmcsaprov|Minimum Transfer Amount}}, then the {{nyvmcsaprov|Secured Party}} will {{nyvmcsaprov|Transfer}} to the {{nyvmcsaprov|Pledgor}} {{nyvmcsaprov|Posted Credit Support (VM)}} specified by the {{nyvmcsaprov|Pledgor}} in that demand having a {{nyvmcsaprov|Value}} as of the date of {{nyvmcsaprov|Transfer}} as close as practicable to the applicable {{nyvmcsaprov|Return Amount (VM)}} (rounded pursuant to Paragraph {{nyvmcsaprov|13}}). Unless otherwise specified in Paragraph {{nyvmcsaprov|13}}, the “'''{{nyvmcsaprov|Return Amount}}'''” applicable to the {{nyvmcsaprov|Secured Party}} for any {{nyvmcsaprov|Valuation Date}} will equal the amount by which:<br>

(i) the {{nyvmcsaprov|Value}} as of that {{nyvmcsaprov|Valuation Date}} of all {{nyvmcsaprov|Posted Credit Support (VM)}} held by the {{nyvmcsaprov|Secured Party}} exceeds<br>

(ii) the {{nyvmcsaprov|Secured Party}}’s {{nyvmcsaprov|Exposure}}.<br> Paragraph {{nyvmcsaprov|4}} '''{{nyvmcsaprov|Conditions Precedent, Transfer Timing, Calculations and Substitutions}}'''<br>

:{{nyvmcsaprov|4(a)}} '''{{nyvmcsaprov|Conditions Precedent}}'''. Unless otherwise specified in Paragraph {{nyvmcsaprov|13}}, each {{nyvmcsaprov|Transfer}} obligation of the {{nyvmcsaprov|Pledgor}} under Paragraphs 3, 5 and 6(d) and of the {{nyvmcsaprov|Secured Party}} under Paragraphs 3, 4(d)(ii), 5, 6(d) and 11(h) is subject to the conditions precedent that:<br>

:{{nyvmcsaprov|4(b)}} '''{{nyvmcsaprov|Transfer Timing}}'''. Subject to Paragraphs 4(a) and 5 and unless otherwise specified in Paragraph {{nyvmcsaprov|13}}, if a demand for the {{nyvmcsaprov|Transfer}} of {{nyvmcsaprov|Eligible Credit Support (VM)}} or {{nyvmcsaprov|Posted Credit Support (VM)}} is made by the Paragraph {{nyvmcsaprov|Notification Time}}, then the relevant {{nyvmcsaprov|Transfer}} will be made not later than the close of business on the {{nyvmcsaprov|Regular Settlement Day}}; if a demand is made after the Paragraph {{nyvmcsaprov|Notification Time}}, then the relevant {{nyvmcsaprov|Transfer}} will be made not later than the close of business on the next {{nyvmcsaprov|Local Business Day}} following the {{nyvmcsaprov|Regular Settlement Day}}.<br>

:{{nyvmcsaprov|4(c)}} '''{{nyvmcsaprov|Calculations}}'''. All calculations of {{nyvmcsaprov|Value}} and {{nyvmcsaprov|Exposure}} for purposes of Paragraphs 3 and 6(d) will be made by the {{nyvmcsaprov|Valuation Agent}} as of the {{nyvmcsaprov|Valuation Time}}; provided that the {{nyvmcsaprov|Valuation Agent}} may use, in the case of any calculation of (i) {{nyvmcsaprov|Value}}, {{nyvmcsaprov|Value}}s most recently reasonably available for close of business in the relevant market for the relevant {{nyvmcsaprov|Eligible Credit Support (VM)}} as of the {{nyvmcsaprov|Valuation Time}} and (ii) {{nyvmcsaprov|Exposure}}, relevant information or data most recently reasonably available for close of business in the relevant market(s) as of the {{nyvmcsaprov|Valuation Time}}. The {{nyvmcsaprov|Valuation Agent}} will notify each party (or the other party, if the {{nyvmcsaprov|Valuation Agent}} is a party) of its calculations not later than the Paragraph {{nyvmcsaprov|Notification Time}} on the {{nyvmcsaprov|Local Business Day}} following the applicable {{nyvmcsaprov|Valuation Date}} (or in the case of Paragraph 6(d), following the date of calculation).<br>

:{{nyvmcsaprov|4(d)}} '''{{nyvmcsaprov|Substitutions}}'''.<br>

(i) Unless otherwise specified in Paragraph {{nyvmcsaprov|13}}, upon notice to the {{nyvmcsaprov|Secured Party}} specifying the items of {{nyvmcsaprov|Posted Credit Support (VM)}} to be exchanged, the {{nyvmcsaprov|Pledgor}} may, on any {{nyvmcsaprov|Local Business Day}}, {{nyvmcsaprov|Transfer}} to the {{nyvmcsaprov|Secured Party}} substitute {{nyvmcsaprov|Eligible Credit Support (VM)}} (the “'''{{nyvmcsaprov|Substitute Credit Support (VM)}}'''”); and<br>

(ii) subject to Paragraph {{nyvmcsaprov|4(a)}}, the {{nyvmcsaprov|Secured Party}} will {{nyvmcsaprov|Transfer}} to the {{nyvmcsaprov|Pledgor}} the items of {{nyvmcsaprov|Posted Credit Support (VM)}} specified by the {{nyvmcsaprov|Pledgor}} in its notice not later than the {{nyvmcsaprov|Local Business Day}} following the date on which the {{nyvmcsaprov|Secured Party}} receives the {{nyvmcsaprov|Substitute Credit Support (VM)}}, unless otherwise specified in Paragraph {{nyvmcsaprov|13 }} (the “'''{{nyvmcsaprov|Substitution Date}}'''”); provided that the {{nyvmcsaprov|Secured Party}} will only be obligated to {{nyvmcsaprov|Transfer}} {{nyvmcsaprov|Posted Credit Support (VM)}} with a {{nyvmcsaprov|Value}} as of the date of {{nyvmcsaprov|Transfer}} of that {{nyvmcsaprov|Posted Credit Support (VM)}} equal to the {{nyvmcsaprov|Value}} as of that date of the {{nyvmcsaprov|Substitute Credit Support (VM)}}.<br> Paragraph {{nyvmcsaprov|5}} '''{{nyvmcsaprov|Dispute Resolution}}'''<br>

(i) the {{nyvmcsaprov|Disputing Party}} will notify the other party and the {{nyvmcsaprov|Valuation Agent}} (if the {{nyvmcsaprov|Valuation Agent}} is not the other party) not later than the close of business on (X) the date that the {{nyvmcsaprov|Transfer}} is due in respect of such {{nyvmcsaprov|Delivery Amount (VM)}} or {{nyvmcsaprov|Return Amount (VM)}} in the case of (I) above, or (Y) the {{nyvmcsaprov|Local Business Day}} following the date of {{nyvmcsaprov|Transfer}} in the case of (II) above,<br>

(ii) subject to Paragraph {{nyvmcsaprov|4(a)}}, the appropriate party will {{nyvmcsaprov|Transfer}} the undisputed amount to the other party not later than the close of business on (X) the date that the {{nyvmcsaprov|Transfer}} is due in respect of such {{nyvmcsaprov|Delivery Amount (VM)}} or {{nyvmcsaprov|Return Amount (VM)}} in the case of (I) above, or (Y) the {{nyvmcsaprov|Local Business Day}} following the date of {{nyvmcsaprov|Transfer}} in the case of (II) above,<br>

(iii) the parties will consult with each other in an attempt to resolve the dispute, and<br>

(iv) if they fail to resolve the dispute by the {{nyvmcsaprov|Resolution Time}}, then:<br>

:::{{nyvmcsaprov|5(a)(iv)(A)}} In the case of a dispute involving a {{nyvmcsaprov|Delivery Amount (VM)}} or Return Amount (VM), unless otherwise specified in Paragraph {{nyvmcsaprov|13}}, the {{nyvmcsaprov|Valuation Agent}} will recalculate the {{nyvmcsaprov|Exposure}} and the {{nyvmcsaprov|Value}} as of the Recalculation Date by:<br>

::::{{nyvmcsaprov|5(a)(iv)(A)(I)}} utilizing any calculations of {{nyvmcsaprov|Exposure}} for the {{nyvmcsaprov|Covered Transactions}} that the parties have agreed are not in dispute;<br>

::::{{nyvmcsaprov|5(a)(iv)(A)(II)}} (I) if this Agreement is a 1992 ISDA Master Agreement, calculating the {{nyvmcsaprov|Exposure}} for the {{nyvmcsaprov|Covered Transactions}} in dispute by seeking four actual quotations at mid-market from Reference Market-makers for purposes of calculating Market Quotation, and taking the arithmetic average of those obtained, or (II) if this Agreement is an ISDA 2002 Master Agreement or a 1992 ISDA Master Agreement in which the definition of Loss and/or Market Quotation has been amended (including where such amendment has occurred pursuant to the terms of a separate agreement or protocol) to reflect the definition of Close-out Amount from the pre-printed form of the ISDA 2002 Master Agreement as published by ISDA, calculating the {{nyvmcsaprov|Exposure}} for the {{nyvmcsaprov|Covered Transactions}} in dispute by seeking four actual quotations at mid-market from third parties for purposes of calculating the relevant Close-out Amount, and taking the arithmetic average of those obtained; provided that, in either case, if four quotations are not available for a particular Covered {{isdaprov|Transaction)}}, then fewer than four quotations may be used for that Covered {{isdaprov|Transaction)}}, and if no quotations are available for a particular Covered {{isdaprov|Transaction)}}, then the {{nyvmcsaprov|Valuation Agent}}'s original calculations will be used for that Covered {{isdaprov|Transaction)}}; and<br>

::::{{nyvmcsaprov|5(a)(iv)(A)(III)}} utilizing the procedures specified in Paragraph {{nyvmcsaprov|13 }} for calculating the {{nyvmcsaprov|Value}}, if disputed, of {{nyvmcsaprov|Posted Credit Support (VM)}}.<br>

:::{{nyvmcsaprov|5(a)(iv)(B)}} In the case of a dispute involving the {{nyvmcsaprov|Value}} of any {{nyvmcsaprov|Transfer}} of {{nyvmcsaprov|Eligible Credit Support (VM)}} or {{nyvmcsaprov|Posted Credit Support (VM)}}, the {{nyvmcsaprov|Valuation Agent}} will recalculate the {{nyvmcsaprov|Value}} as of the date of {{nyvmcsaprov|Transfer}} pursuant to Paragraph {{nyvmcsaprov|13}}.<br>

Following a recalculation pursuant to this Paragraph, the {{nyvmcsaprov|Valuation Agent}} will notify each party (or the other party, if the {{nyvmcsaprov|Valuation Agent}} is a party) not later than the Paragraph {{nyvmcsaprov|Notification Time}} on the {{nyvmcsaprov|Local Business Day}} following the {{nyvmcsaprov|Resolution Time}}. The appropriate party will, upon demand following that notice by the {{nyvmcsaprov|Valuation Agent}} or a resolution pursuant to (iii) above and subject to Paragraphs 4(a) and 4(b), make the appropriate {{nyvmcsaprov|Transfer}}.<br> Paragraph {{nyvmcsaprov|6}} '''{{nyvmcsaprov|Holding and Using Posted Collateral (VM)}}'''<br>

:{{nyvmcsaprov|6(a)}} '''{{nyvmcsaprov|Care of Posted Collateral (VM)}}'''. Without limiting the {{nyvmcsaprov|Secured Party}}’s rights under Paragraph 6(c), the {{nyvmcsaprov|Secured Party}} will exercise reasonable care to assure the safe custody of all {{nyvmcsaprov|Posted Collateral (VM)}} to the extent required by applicable law, and in any event the {{nyvmcsaprov|Secured Party}} will be deemed to have exercised reasonable care if it exercises at least the same degree of care as it would exercise with respect to its own property. Except as specified in the preceding sentence, the {{nyvmcsaprov|Secured Party}} will have no duty with respect to {{nyvmcsaprov|Posted Collateral (VM)}}, including, without limitation, any duty to collect any {{nyvmcsaprov|Distributions}}, or enforce or preserve any rights pertaining thereto.<br>

(a) '''{{nyvmcsaprov|Eligibility to Hold Posted Collateral (VM); Custodians (VM)}}'''.<br>

:{{nyvmcsaprov|6(b)}} '''General'''. Subject to the satisfaction of any conditions specified in Paragraph {{nyvmcsaprov|13 }} for holding {{nyvmcsaprov|Posted Collateral (VM)}}, the {{nyvmcsaprov|Secured Party}} will be entitled to hold {{nyvmcsaprov|Posted Collateral (VM)}} or to appoint an agent (a “'''{{nyvmcsaprov|Custodian (VM)}}'''”) to hold {{nyvmcsaprov|Posted Collateral (VM)}} for the {{nyvmcsaprov|Secured Party}}. Upon notice by the {{nyvmcsaprov|Secured Party}} to the {{nyvmcsaprov|Pledgor}} of the appointment of a {{nyvmcsaprov|Custodian (VM)}}, the {{nyvmcsaprov|Pledgor}}’s obligations to make any {{nyvmcsaprov|Transfer}} will be discharged by making the {{nyvmcsaprov|Transfer}} to that {{nyvmcsaprov|Custodian (VM)}}. The holding of {{nyvmcsaprov|Posted Collateral (VM)}} by a {{nyvmcsaprov|Custodian (VM)}} will be deemed to be the holding of that {{nyvmcsaprov|Posted Collateral (VM)}} by the {{nyvmcsaprov|Secured Party}} for which the {{nyvmcsaprov|Custodian (VM)}} is acting.<br>

(i) '''{{nyvmcsaprov|Failure to Satisfy Conditions}}'''. If the {{nyvmcsaprov|Secured Party}} or its {{nyvmcsaprov|Custodian (VM)}} fails to satisfy any conditions for holding {{nyvmcsaprov|Posted Collateral (VM)}}, then upon a demand made by the {{nyvmcsaprov|Pledgor}}, the {{nyvmcsaprov|Secured Party}} will, not later than five {{nyvmcsaprov|Local Business Day}}s after the demand, {{nyvmcsaprov|Transfer}} or cause its {{nyvmcsaprov|Custodian (VM)}} to {{nyvmcsaprov|Transfer}} all {{nyvmcsaprov|Posted Collateral (VM)}} held by it to a {{nyvmcsaprov|Custodian (VM)}} that satisfies those conditions or to the {{nyvmcsaprov|Secured Party}} if it satisfies those conditions.<br>

(ii) '''Liability'''. The {{nyvmcsaprov|Secured Party}} will be liable for the acts or omissions of its {{nyvmcsaprov|Custodian (VM)}} to the same extent that the {{nyvmcsaprov|Secured Party}} would be liable hereunder for its own acts or omissions.<br>

:{{nyvmcsaprov|6(c)}} {{nyvmcsaprov|Use of Posted Collateral (VM)}}. Unless otherwise specified in Paragraph {{nyvmcsaprov|13}} and without limiting the rights and obligations of the parties under Paragraphs {{nyvmcsaprov|3}}, {{nyvmcsaprov|4(d)(ii)}}, {{nyvmcsaprov|5}}, {{nyvmcsaprov|6(d)}} and {{nyvmcsaprov|8}}, if the {{nyvmcsaprov|Secured Party}} is not a {{isdaprov|Defaulting Party}} or an {{isdaprov|Affected Party}} with respect to a {{nyvmcsaprov|Specified Condition}} and no {{isdaprov|Early Termination Date)}} has occurred or been designated as the result of an {{isdaprov|Event of Default)}} or {{nyvmcsaprov|Specified Condition}} with respect to the {{nyvmcsaprov|Secured Party}}, then the {{nyvmcsaprov|Secured Party}} will, notwithstanding Section 9-207 of the New York Uniform Commercial Code, have the right to:<br>

(i) sell, pledge, rehypothecate, assign, invest, use, commingle or otherwise dispose of, or otherwise use in its business any {{nyvmcsaprov|Posted Collateral (VM)}} it holds, free from any claim or right of any nature whatsoever of the {{nyvmcsaprov|Pledgor}}, including any equity or right of redemption by the {{nyvmcsaprov|Pledgor}}; and<br>

(ii) register any {{nyvmcsaprov|Posted Collateral (VM)}} in the name of the {{nyvmcsaprov|Secured Party}}, its {{nyvmcsaprov|Custodian (VM)}} or a nominee for either.<br>

:{{nyvmcsaprov|6(d)}} {{nyvmcsaprov|Distributions}}, {{nyvmcsaprov|Interest Amount (VM)}} and {{nyvmcsaprov|Interest Payment (VM)}}.<br>

(i) {{nyvmcsaprov|Distributions}}. Subject to Paragraph {{nyvmcsaprov|4(a)}}, if the {{nyvmcsaprov|Secured Party}} receives or is deemed to receive {{nyvmcsaprov|Distributions}} on a {{nyvmcsaprov|Local Business Day}}, it will {{nyvmcsaprov|Transfer}} to the {{nyvmcsaprov|Pledgor}} not later than the following {{nyvmcsaprov|Local Business Day}} any {{nyvmcsaprov|Distributions}} it receives or is deemed to receive to the extent that a {{nyvmcsaprov|Delivery Amount (VM)}} would not be created or increased by that {{nyvmcsaprov|Transfer}}, as calculated by the {{nyvmcsaprov|Valuation Agent}} (and the date of calculation will be deemed to be a {{nyvmcsaprov|Valuation Date}} for this purpose).<br>

(ii) {{nyvmcsaprov|Interest Amount (VM)}} and {{nyvmcsaprov|Interest Payment (VM)}}. Unless otherwise specified in Paragraph {{nyvmcsaprov|13 }} and subject to Paragraph {{nyvmcsaprov|4(a)}}, in lieu of any interest, dividends or other amounts paid or deemed to have been paid with respect to {{nyvmcsaprov|Posted Collateral (VM)}} in the form of {{nyvmcsaprov|Cash)}} (all of which may be retained by the {{nyvmcsaprov|Secured Party}}),<br>

:::{{nyvmcsaprov|6(d)(ii)(A)}} if “Interest {{nyvmcsaprov|Transfer}}” is specified as applicable in Paragraph {{nyvmcsaprov|13}}, the {{nyvmcsaprov|Interest Payer (VM)}} will {{nyvmcsaprov|Transfer}} to the {{nyvmcsaprov|Interest Payee (VM)}}, at the times specified in Paragraph {{nyvmcsaprov|13}}, the relevant {{nyvmcsaprov|Interest Payment (VM)}}; provided that if “Interest Payment Netting” is specified as applicable in Paragraph {{nyvmcsaprov|13}}: <br>

::::{{nyvmcsaprov|6(d)(ii)(A)(I)}} if the {{nyvmcsaprov|Interest Payer (VM)}} is entitled to demand a {{nyvmcsaprov|Delivery Amount (VM)}} or {{nyvmcsaprov|Return Amount (VM)}}, in respect of the date such {{nyvmcsaprov|Interest Payment (VM)}} is required to be {{nyvmcsaprov|Transfer}}red:<br>

:::::{{nyvmcsaprov|6(d)(ii)(A)(I)(a)}} such {{nyvmcsaprov|Delivery Amount (VM)}} or {{nyvmcsaprov|Return Amount (VM)}} will be reduced (but not below zero) by such {{nyvmcsaprov|Interest Payment (VM)}}; provided that, in case of such {{nyvmcsaprov|Return Amount (VM)}}, if the amount of {{nyvmcsaprov|Posted Collateral (VM)}} which is comprised of {{nyvmcsaprov|Cash)}} in the {{nyvmcsaprov|Base Currency}} is less than such {{nyvmcsaprov|Interest Payment (VM)}}, such reduction will only be to the extent of the amount of such {{nyvmcsaprov|Cash)}} which is {{nyvmcsaprov|Posted Collateral (VM)}} (the “'''{{nyvmcsaprov|Eligible Return Amount (VM)}}'''”); and<br>

:::::{{nyvmcsaprov|6(d)(ii)(A)(I)(b)}} the {{nyvmcsaprov|Interest Payer (VM)}} will {{nyvmcsaprov|Transfer}} to the {{nyvmcsaprov|Interest Payee (VM)}} the amount of the excess, if any, of such {{nyvmcsaprov|Interest Payment (VM)}} over such {{nyvmcsaprov|Delivery Amount (VM)}} or Eligible {{nyvmcsaprov|Return Amount (VM)}}, as applicable; and<br>

::::{{nyvmcsaprov|6(d)(ii)(A)(II)}} if under Paragraph {{nyvmcsaprov|6(d)(ii)(A)(I)(a)}} a {{nyvmcsaprov|Delivery Amount (VM)}} is reduced (the amount of such reduction, the “'''{{nyvmcsaprov|Delivery Amount Reduction (VM)}}'''”) or a {{nyvmcsaprov|Return Amount (VM)}} is reduced (the amount of such reduction, the “'''{{nyvmcsaprov|Return Amount Reduction (VM)}}'''”), then for purposes of determining {{nyvmcsaprov|Posted Collateral (VM)}}, the {{nyvmcsaprov|Secured Party}} (a) will be deemed to have received an amount in {{nyvmcsaprov|Cash)}} in the {{nyvmcsaprov|Base Currency}} equal to any{{nyvmcsaprov| Delivery Amount Reduction (VM)}}, and such amount will constitute {{nyvmcsaprov|Posted Collateral (VM)}} in such {{nyvmcsaprov|Cash)}} and will be subject to the security interest granted under Paragraph {{nyvmcsaprov|2}} or (b) will be deemed to have {{nyvmcsaprov|Transfer}}red an amount in {{nyvmcsaprov|Cash)}} in the {{nyvmcsaprov|Base Currency}} equal to any {{nyvmcsaprov|Return Amount Reduction (VM)}}, as applicable, in each case on the day on which the relevant {{nyvmcsaprov|Interest Payment (VM)}} was due to be {{nyvmcsaprov|Transfer}}red, as applicable; and<br>

:::{{nyvmcsaprov|6(d)(ii)(B)}} if “'''{{nyvmcsaprov|Interest Adjustment}}'''” is specified as applicable in Paragraph {{nyvmcsaprov|13}}, the {{nyvmcsaprov|Posted Collateral (VM)}} will be adjusted by the {{nyvmcsaprov|Secured Party}}, at the times specified in Paragraph {{nyvmcsaprov|13}}, as follows:<br>

::::{{nyvmcsaprov|6(d)(ii)(B)(I)}} if the {{nyvmcsaprov|Interest Amount (VM)}} for an {{nyvmcsaprov|Interest Period}} is a positive number, the {{nyvmcsaprov|Interest Amount (VM)}} will constitute {{nyvmcsaprov|Posted Collateral (VM)}} in the form of {{nyvmcsaprov|Cash)}} in the {{nyvmcsaprov|Base Currency}} and will be subject to the security interest granted under Paragraph {{nyvmcsaprov|2}}; and<br>

::::{{nyvmcsaprov|6(d)(ii)(B)(II)}} if the {{nyvmcsaprov|Interest Amount (VM)}} for an {{nyvmcsaprov|Interest Period}} is a negative number and any {{nyvmcsaprov|Posted Collateral (VM)}} is in the form of {{nyvmcsaprov|Cash)}} in the {{nyvmcsaprov|Base Currency}}, the {{nyvmcsaprov|Interest Amount (VM)}} will constitute a reduction of {{nyvmcsaprov|Posted Collateral (VM)}} in the form of such {{nyvmcsaprov|Cash)}} in an amount (such amount, the “'''{{nyvmcsaprov|Interest Adjustment Reduction Amount (VM)}}'''”) equal to the absolute {{nyvmcsaprov|Value}} of the {{nyvmcsaprov|Interest Amount (VM)}}; provided that if the amount of {{nyvmcsaprov|Posted Collateral (VM)}} which is comprised of such {{nyvmcsaprov|Cash)}} is less than the {{nyvmcsaprov|Interest Adjustment Reduction Amount (VM)}}, such reduction will only be to the extent of the amount of such {{nyvmcsaprov|Cash)}} which is {{nyvmcsaprov|Posted Collateral (VM)}} and the {{nyvmcsaprov|Pledgor}} will be obligated to {{nyvmcsaprov|Transfer}} the remainder of the {{nyvmcsaprov|Interest Adjustment Reduction Amount (VM)}} to the {{nyvmcsaprov|Secured Party}} on the day that such reduction occurred.<br> Paragraph {{nyvmcsaprov|7}} '''{{nyvmcsaprov|Events of Default)}}'''<br>

:{{nyvmcsaprov|(i)}} that party fails (or fails to cause its {{nyvmcsaprov|Custodian (VM)}}) to make, when due, any {{nyvmcsaprov|Transfer}} of {{nyvmcsaprov|Eligible Collateral (VM)}}, {{nyvmcsaprov|Posted Collateral (VM)}} or the {{nyvmcsaprov|Interest Payment (VM)}}, as applicable, required to be made by it and that failure continues for two {{nyvmcsaprov|Local Business Day}}s after notice of that failure is given to that party;<br>

:{{nyvmcsaprov|(ii)}} that party fails to comply with any restriction or prohibition specified in this Annex with respect to any of the rights specified in Paragraph {{nyvmcsaprov|6(c)}} and that failure continues for five {{nyvmcsaprov|Local Business Day}}s after notice of that failure is given to that party; or<br>

:{{nyvmcsaprov|(iii)}} that party fails to comply with or perform any agreement or obligation other than those specified in Paragraphs {{nyvmcsaprov|7(i)}} and {{nyvmcsaprov|7(ii)}} and that failure continues for 30 days after notice of that failure is given to that party.<br> Paragraph {{nyvmcsaprov|8}} '''{{nyvmcsaprov|Certain Rights and Remedies)}}'''<br>

:{{nyvmcsaprov|8(a)}} '''{{nyvmcsaprov|Secured Party’s Rights and Remedies}}'''. If at any time (1) an {{isdaprov|Event of Default)}} or {{nyvmcsaprov|Specified Condition}} with respect to the {{nyvmcsaprov|Pledgor}} has occurred and is continuing or (2) an {{isdaprov|Early Termination Date)}} has occurred or been designated as the result of an {{isdaprov|Event of Default)}} or {{nyvmcsaprov|Specified Condition}} with respect to the {{nyvmcsaprov|Pledgor}}, then, unless the {{nyvmcsaprov|Pledgor}} has paid in full all of its {{isdaprov|Obligations}} that are then due, the {{nyvmcsaprov|Secured Party}} may exercise one or more of the following rights and remedies:<br>

:{{nyvmcsaprov|(i)}} all rights and remedies available to a {{nyvmcsaprov|Secured Party}} under applicable law with respect to {{nyvmcsaprov|Posted Collateral (VM)}} held by the {{nyvmcsaprov|Secured Party}};<br>

:{{nyvmcsaprov|(ii)}} any other rights and remedies available to the {{nyvmcsaprov|Secured Party}} under the terms of {{nyvmcsaprov|Other Posted Support (VM)}}, if any;<br>

:{{nyvmcsaprov|(iii)}} the right to {{nyvmcsaprov|Set-off}} (A) any amounts payable by the {{nyvmcsaprov|Pledgor}} with respect to any {{isdaprov|Obligations}} and (B) any {{nyvmcsaprov|Cash)}} amounts and the {{nyvmcsaprov|Cash)}} equivalent of any non-{{nyvmcsaprov|Cash)}} items posted to the {{nyvmcsaprov|Pledgor}} by the {{nyvmcsaprov|Secured Party}} as margin under any {{nyvmcsaprov|Other CSA}} (other than any {{nyvmcsaprov|Other CSA Excluded Credit Support}}) the return of which is due to the {{nyvmcsaprov|Secured Party}} against any {{nyvmcsaprov|Posted Collateral (VM)}} or the {{nyvmcsaprov|Cash)}} equivalent of any {{nyvmcsaprov|Posted Collateral (VM)}} held by the {{nyvmcsaprov|Secured Party}} (or any obligation of the {{nyvmcsaprov|Secured Party}} to {{nyvmcsaprov|Transfer}} that {{nyvmcsaprov|Posted Collateral (VM)}}); and<br>