2016 ISDA VM NY CSA: Difference between revisions

2016 ISDA VM NY CSA (view source)

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 {{ISDA New York Law Credit Support Annex 2016 12}}
 {{ISDA New York Law Credit Support Annex 2016 13}}
-===Paragraph {{nyvmcsaprov|9}} '''{{nyvmcsaprov|Representations}}'''===
-Each party represents to the other party (which representations will be deemed to be repeated as of each date on which it, as the {{nyvmcsaprov|Pledgor}}, {{nyvmcsaprov|Transfer}}s {{nyvmcsaprov|Eligible Collateral (VM)}}) that:<br>
-:{{nyvmcsaprov|9(i)}} it has the power to grant a security interest in and lien on any {{nyvmcsaprov|Eligible Collateral (VM)}} it {{nyvmcsaprov|Transfer}}s as the {{nyvmcsaprov|Pledgor}} and has taken all necessary actions to authorize the granting of that security interest and lien;<br>
-:{{nyvmcsaprov|9(ii)}} it is the sole owner of or otherwise has the right to {{nyvmcsaprov|Transfer}} all {{nyvmcsaprov|Eligible Collateral (VM)}} it {{nyvmcsaprov|Transfer}}s to the {{nyvmcsaprov|Secured Party}} hereunder, free and clear of any security interest, lien, encumbrance or other restrictions other than the security interest and lien granted under Paragraph 2;<br>
-:{{nyvmcsaprov|9(iii)}} upon the {{nyvmcsaprov|Transfer}} of any {{nyvmcsaprov|Eligible Collateral (VM)}} to the {{nyvmcsaprov|Secured Party}} under the terms of this Annex, the {{nyvmcsaprov|Secured Party}} will have a valid and perfected first priority security interest therein (assuming that any central clearing corporation or any third-party financial intermediary or other entity not within the control of the {{nyvmcsaprov|Pledgor}} involved in the {{nyvmcsaprov|Transfer}} of that {{nyvmcsaprov|Eligible Collateral (VM)}} gives the notices and takes the action required of it under applicable law for perfection of that interest); and<br>
-:{{nyvmcsaprov|9(iv)}} the performance by it of its obligations under this Annex will not result in the creation of any security interest, lien or other encumbrance on any {{nyvmcsaprov|Posted Collateral (VM)}} other than the security interest and lien granted under Paragraph 2.<br>
-===Paragraph {{nyvmcsaprov|10}} '''{{nyvmcsaprov|Expenses}}'''===
-{{nyvmcsaprov|10(a)}} '''General'''. Except as otherwise provided in Paragraphs 10(b) and 10(c), each party will pay its own costs and expenses in connection with performing its obligations under this Annex and neither party will be liable for any costs and expenses incurred by the other party in connection herewith.<br>
-{{nyvmcsaprov|10(b)}} '''{{nyvmcsaprov|Posted Credit Support (VM)}}'''. The {{nyvmcsaprov|Pledgor}} will promptly pay when due all taxes, assessments or charges of any nature that are imposed with respect to {{nyvmcsaprov|Posted Credit Support (VM)}} held by the {{nyvmcsaprov|Secured Party}} upon becoming aware of the same, regardless of whether any portion of that {{nyvmcsaprov|Posted Credit Support (VM)}} is subsequently disposed of under Paragraph 6(c), except for those taxes, assessments and charges that result from the exercise of the {{nyvmcsaprov|Secured Party}}’s rights under Paragraph 6(c).<br>
-{{nyvmcsaprov|10(c)}} '''{{nyvmcsaprov|Liquidation/Application of Posted Credit Support (VM)}}'''. All reasonable costs and expenses incurred by or on behalf of the {{nyvmcsaprov|Secured Party}} or the {{nyvmcsaprov|Pledgor}} in connection with the liquidation and/or application of any {{nyvmcsaprov|Posted Credit Support (VM)}} under Paragraph {{nyvmcsaprov|8}} will be payable, on demand and pursuant to the '''{{nyvmcsaprov|Expenses}}''' Section of this Agreement, by the {{isdaprov|Defaulting Party}} or, if there is no {{isdaprov|Defaulting Party}}, equally by the parties.<br>
 ===Paragraph {{nyvmcsaprov|11}} '''{{nyvmcsaprov|Miscellaneous)}}'''===
 {{nyvmcsaprov|11(a)}} '''{{nyvmcsaprov|Default Interest}}'''. A {{nyvmcsaprov|Secured Party}} that fails to make, when due, any {{nyvmcsaprov|Transfer}} of {{nyvmcsaprov|Posted Collateral (VM)}} will be obligated to pay the {{nyvmcsaprov|Pledgor}} (to the extent permitted under applicable law) an amount equal to interest at the Default Rate multiplied by the {{nyvmcsaprov|Value}} of the items of property that were required to be {{nyvmcsaprov|Transfer}}red, from (and including) the date that {{nyvmcsaprov|Posted Collateral (VM)}} was required to be {{nyvmcsaprov|Transfer}}red to (but excluding) the date of {{nyvmcsaprov|Transfer}} of that {{nyvmcsaprov|Posted Collateral (VM)}}. This interest will be calculated on the basis of daily compounding and the actual number of days elapsed. An {{nyvmcsaprov|Interest Payer (VM)}} that fails to make, when due, any {{nyvmcsaprov|Transfer}} of an {{nyvmcsaprov|Interest Payment (VM)}} will be obligated to pay the {{nyvmcsaprov|Interest Payee (VM)}} (to the extent permitted under applicable law) an amount equal to interest at the Default Rate (and for such purposes, if the Default Rate is less than zero, it will be deemed to be zero) multiplied by that {{nyvmcsaprov|Interest Payment (VM)}}, from (and including) the date that {{nyvmcsaprov|Interest Payment (VM)}} was required to be {{nyvmcsaprov|Transfer}}red to (but excluding) the date of {{nyvmcsaprov|Transfer}} of that {{nyvmcsaprov|Interest Payment (VM)}}. This interest will be calculated on the basis of daily compounding and the actual number of days elapsed.<br>