Bankruptcy - ISDA Provision: Difference between revisions

Bankruptcy - ISDA Provision (view source)

Revision as of 16:33, 11 April 2020

958 bytes removed , 11 April 2020

no edit summary

Amwelladmin

Bureaucrats, Interface administrators, Administrators

82,891

edits

@@ Line 1: / Line 1: @@
 {{manual|MI|2002|5(a)(vii)|Section|5(a)(vii)|medium}}
-====Differences between {{1992isda}} and {{2002isda}} definitions of {{isdaprov|Bankruptcy}}====
-There are two:
-*'''Slightly more specific concept of insolvency''': firstly, in limb 4 ('''insolvency proceedings''') a new limb (A) has been included to cover action taken by an entity-specific regulator or supervisor (as opposed to a common or garden insolvency proceeding)
-*'''Contracted [[grace period]]''': The allowable period for dismissal of an insolvency petition (under 5(a)(vii)(4)) or the exercise of security over assets (under 5(a)(vii)(7)) is compressed from 30 days to 15 days. This, in aggregate over the whole global market, keeps many a negotiator in meaningful<ref>“meaningful” is in the eye of the beholder, you understand.</ref> employment, and you will see many larger organisations amending these [[grace period]]s back to the 1992 standard of 30 days.
-===Regional Bankruptcy variations===
-*[[Swiss Bankruptcy Language|Switzerland]]
 ====Market standard====
 The ISDA {{isdaprov|bankruptcy}} definition is rarely a source of great controversy (except for the [[grace period]], as to which see below, which gets negotiated only through custom amongst ISDA negotiators because, in its wisdom, [[ISDA]] thought fit to change it in the {{2002ma}}. So you have a sort of pas-de-deux between negotiators where they argue about it for a while before getting tired, being shouted at by their business people, and moving on to something more important to argue about, like {{isdaprov|Cross Default}}<ref>This, by the way, is an [[ISDA]] In-joke. In fact, {{isdaprov|Cross Default}} is pretty much pointless, a fact that every [[Mediocre lawyer|ISDA lawyer]] knows, but none will admit on the record.</ref>.)