2016 ISDA VM NY CSA: Difference between revisions

This Annex supplements, forms part of, and is subject to, the above-referenced Agreement, is part of its Schedule and is a {{isdaprov|Credit Support Document)}} under this Agreement with respect to each party.<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(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>  

(ii) no {{isdaprov|Early Termination Date)}} for which any unsatisfied payment obligations exist has occurred or been designated as the result of an {{isdaprov|Event of Default}} or {{nyvmcsaprov|Specified Condition}} with respect to the other party.<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|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>

:{{nyvmcsaprov|6(d)(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)(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)(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)(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>  

{{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|8(a)(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>

:{{nyvmcsaprov|8(a)(iv)}} the right to liquidate any {{nyvmcsaprov|Posted Collateral (VM)}} held by the {{nyvmcsaprov|Secured Party}} through one or more public or private sales or other dispositions with such notice, if any, as may be required under applicable law, 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}} (with the {{nyvmcsaprov|Secured Party}} having the right to purchase any or all of the {{nyvmcsaprov|Posted Collateral (VM)}} to be sold) and to apply the proceeds (or the {{nyvmcsaprov|Cash)}} equivalent thereof) from the liquidation of the {{nyvmcsaprov|Posted Collateral (VM)}} to (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}} in that order as the {{nyvmcsaprov|Secured Party}} may elect.<br>

{{nyvmcsaprov|8(b)}} '''{{nyvmcsaprov|Pledgor’s Rights and Remedies}}'''. If at any time 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|Secured Party}}, then (except in the case of an {{isdaprov|Early Termination Date)}} relating to fewer than all {{isdaprov|Transaction)}}s where the {{nyvmcsaprov|Secured Party}} has paid in full all of its obligations that are then due under Section 6(e) of this Agreement):<br>

::{{nyvmcsaprov|8(b)(v)(A)}} {{nyvmcsaprov|Set-off}} any amounts payable by the {{nyvmcsaprov|Pledgor}} with respect to any {{isdaprov|Obligations}} 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)}});<br>

::{{nyvmcsaprov|8(b)(v)(B)}} {{nyvmcsaprov|Set-off}}, net, or apply credit support received under any {{nyvmcsaprov|Other CSA}} or the proceeds thereof 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>

{{nyvmcsaprov|8(c)}} Deficiencies and Excess Proceeds. The {{nyvmcsaprov|Secured Party}} will {{nyvmcsaprov|Transfer}} to the {{nyvmcsaprov|Pledgor}} any proceeds and {{nyvmcsaprov|Posted Credit Support (VM)}} remaining after liquidation, {{nyvmcsaprov|Set-off}} and/or application under Paragraphs {{nyvmcsaprov|8(a)}} and {{nyvmcsaprov|8(b)}} after satisfaction in full of all amounts payable by the {{nyvmcsaprov|Pledgor}} with respect to any {{isdaprov|Obligations}}; and the {{nyvmcsaprov|Pledgor}} in all events will remain liable for any amounts remaining unpaid after any liquidation, {{nyvmcsaprov|Set-off}} and/or application under {{nyvmcsaprov|8(a)}} and {{nyvmcsaprov|8(b)}.<br>

“'''{{nyvmcsaprov|Distributions}}'''” means with respect to {{nyvmcsaprov|Posted Collateral (VM)}} other than {{nyvmcsaprov|Cash)}}, all principal, interest and other payments and distributions of {{nyvmcsaprov|Cash)}} or other property with respect thereto, regardless of whether the {{nyvmcsaprov|Secured Party}} has disposed of that {{nyvmcsaprov|Posted Collateral (VM)}} under Paragraph 6(c). {{nyvmcsaprov|Distributions}} will not include any item of property acquired by the {{nyvmcsaprov|Secured Party}} upon any disposition or liquidation of {{nyvmcsaprov|Posted Collateral (VM)}} or, with respect to any {{nyvmcsaprov|Posted Collateral (VM)}} in the form of {{nyvmcsaprov|Cash)}}, any distributions on that collateral, unless otherwise specified herein.<br>

:{{nyvmcsaprov|(i)}} if this Agreement is a 1992 ISDA Master Agreement, the amount, if any, that would be payable to a party that is the {{nyvmcsaprov|Secured Party}} by the other party (expressed as a positive number) or by a party that is the {{nyvmcsaprov|Secured Party}} to the other party (expressed as a negative number) pursuant to Section 6(e)(ii)(2)(A) of this Agreement as if all {{nyvmcsaprov|Covered Transactions}} were being terminated as of the relevant {{nyvmcsaprov|Valuation Time}} on the basis that the {{nyvmcsaprov|Base Currency}} is the Termination Currency; provided that Market Quotation will be determined by the {{nyvmcsaprov|Valuation Agent}} on behalf of that party using its estimates at mid-market of the amounts that would be paid for Replacement {{isdaprov|Transaction)}}s (as that term is defined in the definition of “Market Quotation”); and<br>

:{{nyvmcsaprov|(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, the amount, if any, that would be payable to a party that is the {{nyvmcsaprov|Secured Party}} by the other party (expressed as a positive number) or by a party that is the {{nyvmcsaprov|Secured Party}} to the other party (expressed as a negative number) pursuant to Section 6(e)(ii)(1) (but without reference to clause (3) of Section 6(e)(ii)) of this Agreement as if all {{nyvmcsaprov|Covered Transactions}} were being terminated as of the relevant {{nyvmcsaprov|Valuation Time}} on the basis that the {{nyvmcsaprov|Base Currency}} is the Termination Currency; provided that the Close-out Amount will be determined by the {{nyvmcsaprov|Valuation Agent}} on behalf of that party using its estimates at mid-market of the amounts that would be paid for {{isdaprov|Transaction)}}s providing the economic equivalent of (X) the material terms of the {{nyvmcsaprov|Covered Transactions}}, including the payments and deliveries by the parties under Section 2(a)(i) in respect of the {{nyvmcsaprov|Covered Transactions}} that would, but for the occurrence of the relevant {{isdaprov|Early Termination Date)}}, have been required after that date (assuming satisfaction of the conditions precedent in Section 2(a)(iii)), and (Y) the option rights of the parties in respect of the {{nyvmcsaprov|Covered Transactions}}.<br>

“'''{{nyvmcsaprov|Interest Amount (VM)}}'''” means, with respect to an {{nyvmcsaprov|Interest Period}}, the aggregate sum of the {{nyvmcsaprov|Base Currency Equivalent}}s of the amounts of interest determined for each relevant currency and calculated for each day in that {{nyvmcsaprov|Interest Period}} on any {{nyvmcsaprov|Posted Collateral (VM)}} in the form of {{nyvmcsaprov|Cash)}} in such currency held by the {{nyvmcsaprov|Secured Party}} on that day, determined by the {{nyvmcsaprov|Secured Party}} for each such day as follows:<br>

:{{nyvmcsaprov|(i)}} the amount of {{nyvmcsaprov|Cash)}} in such currency on that day plus, only if “{{nyvmcsaprov|Daily Interest Compounding}}” is specified as applicable in Paragraph {{nyvmcsaprov|13}}, the aggregate of each {{nyvmcsaprov|Interest Amount (VM)}} in respect of such currency determined for each preceding day, if any, in that {{nyvmcsaprov|Interest Period}}; multiplied by<br>

“'''{{nyvmcsaprov|Interest Period}}'''” means the period from (and including) the last day on which (i) a party became obligated to {{nyvmcsaprov|Transfer}} an {{nyvmcsaprov|Interest Payment (VM)}} or (ii) an {{nyvmcsaprov|Interest Amount (VM)}} was included or otherwise became constituted as part of {{nyvmcsaprov|Posted Collateral (VM)}} (or, if no {{nyvmcsaprov|Interest Payment (VM)}} or {{nyvmcsaprov|Interest Amount (VM)}} has yet fallen due or been included or otherwise became constituted as a part of {{nyvmcsaprov|Posted Collateral (VM)}}, respectively, the day on which {{nyvmcsaprov|Eligible Credit Support (VM)}} in the form of {{nyvmcsaprov|Cash)}} was {{nyvmcsaprov|Transfer}}red to or received by the {{nyvmcsaprov|Secured Party}}) to (but excluding) the day on which (i) a party is obligated to {{nyvmcsaprov|Transfer}} the current {{nyvmcsaprov|Interest Payment (VM)}} or (ii) the current {{nyvmcsaprov|Interest Amount (VM)}} is included or otherwise becomes constituted as a part of {{nyvmcsaprov|Posted Collateral (VM)}}.<br>

:{{nyvmcsaprov|(i)}} in relation to a {{nyvmcsaprov|Transfer}} of {{nyvmcsaprov|Cash)}} or other property (other than securities) under this Annex, a day on which commercial banks are open for business (including dealings in foreign exchange and foreign currency deposits) in the place where the relevant account is located and, if different, in the principal financial center, if any, of the currency of such payment;<br>

“'''{{nyvmcsaprov|Posted Collateral (VM)}}'''” means all {{nyvmcsaprov|Eligible Collateral (VM)}}, other property, {{nyvmcsaprov|Distributions}}, and all proceeds thereof that have been {{nyvmcsaprov|Transfer}}red to or received by the {{nyvmcsaprov|Secured Party}} under this Annex and not {{nyvmcsaprov|Transfer}}red to the {{nyvmcsaprov|Pledgor}} pursuant to Paragraph 3(b), 4(d)(ii), 6(d)(i) or 11(h) or released by the {{nyvmcsaprov|Secured Party}} under Paragraph '''{{nyvmcsaprov|8}}'''. With respect to any {{nyvmcsaprov|Other Eligible Support (VM)}} in respect of any {{nyvmcsaprov|Interest Payment (VM)}} or relevant part thereof not {{nyvmcsaprov|Transfer}}red pursuant to Paragraph 6(d)(ii)(A) or Paragraph 6(d)(ii)(B), as applicable, if such {{nyvmcsaprov|Interest Amount (VM)}} is a positive number, such {{nyvmcsaprov|Interest Amount (VM)}} will constitute {{nyvmcsaprov|Posted Collateral (VM)}} in the form of {{nyvmcsaprov|Cash)}} in the {{nyvmcsaprov|Base Currency}}.<br>

:{{nyvmcsaprov|(i)}} in the case of {{nyvmcsaprov|Cash)}}, payment or delivery by wire {{nyvmcsaprov|Transfer}} into one or more bank accounts specified by the recipient;<br>

“'''{{nyvmcsaprov|Valuation Time}}'''” means, unless otherwise specified in Paragraph {{nyvmcsaprov|13}}, the time as of which the {{nyvmcsaprov|Valuation Agent}} computes its end of day valuations of derivatives {{isdaprov|Transaction)}}s in the ordinary course of its business (or such other commercially reasonable convenient time on the relevant day as the {{nyvmcsaprov|Valuation Agent}} may determine).<br>

::(A) an amount of {{nyvmcsaprov|Cash)}}, the {{nyvmcsaprov|Base Currency Equivalent}} of such amount multiplied by (VP – HFX); and<br>

(i) The term “{{nyvmcsaprov|Covered Transactions}}” as used in this Annex includes any {{isdaprov|Transaction)}} specified below that is entered into on or after [...], except as otherwise provided in the Confirmation of such {{isdaprov|Transaction)}}:<br>

(A) For purposes of the foregoing, the term “{{nyvmcsaprov|Covered Transactions}}” includes: [Any {{isdaprov|Transaction)}} [that is any of the following] [Swap], [Security-Based Swap], [OTC Derivative], [Physically Settled FX Forward] or [Physically Settled FX Swap]] [and is not any of the following: [Swap], [Security-Based Swap], [OTC Derivative], [Physically Settled FX Forward], or [Physically Settled FX Swap][...]]

[“OTC Derivative” means an “OTC derivative” or “OTC derivative contract” as defined in Article 2(7) of Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories (“EMIR”) other than one which constitutes (i) a “foreign exchange forward” as defined in Article 7(1)(a) of the final draft regulatory technical standards on risk-mitigation techniques for OTC-derivative contracts not cleared by a CCP under Article 11(15) of EMIR dated March 8, 2016 (the “EMIR RTS”) for so long as such {{isdaprov|Transaction)}}s are subject to the transitional exemption from the variation margin requirements under Article 39(6) of the EMIR RTS and<br>

(ii) a single stock equity option or index option {{isdaprov|Transaction)}} as referred to in Article 39(7) of the EMIR RTS for so long as such {{isdaprov|Transaction)}}s are subject to the transitional exemption from the variation margin requirements under Article 39(7) of the EMIR RTS.]<br>

[For the purposes of the foregoing, a {{isdaprov|Transaction)}} will be deemed to be entered into on or after the date specified in this Paragraph 13(b)(i) if an amendment, novation or other lifecycle event with respect to such {{isdaprov|Transaction)}} would cause such {{isdaprov|Transaction)}} to be entered into after such date under law applicable to either party requiring the collection or delivery of variation margin.]*<br>

(A) {{nyvmcsaprov|Cash)}} in an {{nyvmcsaprov|Eligible Currency}} [ ] [ ]% [ ] [ ]%

(B) “'''{{nyvmcsaprov|FX Haircut Percentage}}'''” means, with respect to each party (as the {{nyvmcsaprov|Pledgor}}) and item of {{nyvmcsaprov|Eligible Collateral (VM)}}, [[8]%, unless the {{nyvmcsaprov|Eligible Collateral (VM)}} or {{nyvmcsaprov|Posted Collateral (VM)}} is in the form of {{nyvmcsaprov|Cash)}} [in a Major Currency] or is denominated in a currency that matches [an {{nyvmcsaprov|Eligible Currency}}], in which case the '''{{nyvmcsaprov|FX Haircut Percentage)}}''' will be 0%.]<br>

[The {{nyvmcsaprov|Transfer}} of an {{nyvmcsaprov|Interest Payment (VM)}} by the {{nyvmcsaprov|Interest Payer (VM)}} will be made on [the last {{nyvmcsaprov|Local Business Day}} of each calendar month] [and on any {{nyvmcsaprov|Local Business Day}} that a {{nyvmcsaprov|Return Amount (VM)}} consisting wholly or partly of {{nyvmcsaprov|Cash)}} is {{nyvmcsaprov|Transfer}}red to the {{nyvmcsaprov|Pledgor}} pursuant to Paragraph 3(b)]. The {{nyvmcsaprov|Transfer}} of an {{nyvmcsaprov|Interest Payment (VM)}} by the {{nyvmcsaprov|Interest Payer (VM)}} will be made on [the last {{nyvmcsaprov|Local Business Day}} of each calendar month] [and on any {{nyvmcsaprov|Local Business Day}} that a {{nyvmcsaprov|Delivery Amount (VM)}} consisting wholly or partly of {{nyvmcsaprov|Cash)}} is {{nyvmcsaprov|Transfer}}red to the {{nyvmcsaprov|Secured Party}} pursuant to Paragraph 3(a)].]<br>