|
|
| Line 27: |
Line 27: |
|
| |
|
|
| |
|
| ===Paragraph {{nyvmcsaprov|5}} '''{{nyvmcsaprov|Dispute Resolution}}'''===
| | |
| If a party (a “'''{{nyvmcsaprov|Disputing Party}}'''”) disputes (I) the {{nyvmcsaprov|Valuation Agent}}’s calculation of a {{nyvmcsaprov|Delivery Amount (VM)}} or a {{nyvmcsaprov|Return Amount (VM)}} or (II) the {{nyvmcsaprov|Value}} of any {{nyvmcsaprov|Transfer}} of {{nyvmcsaprov|Eligible Credit Support (VM)}} or {{nyvmcsaprov|Posted Credit Support (VM)}}, then:<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)}}'''=== | | ===Paragraph {{nyvmcsaprov|6}} '''{{nyvmcsaprov|Holding and Using Posted Collateral (VM)}}'''=== |