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Template:M summ 2018 CSD 13(h): Difference between revisions
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You should not be surprised to hear this should be, more or less, ''when the Chargor has actually defaulted and been closed out'' — and, really, the control of secured collateral held under {{imcsdprov|Control Agreement}} would ordinarily be most suitably dealt ''by that {{imcsdprov|Control Agreement}}''. The clue, surely, is in the name? | You should not be surprised to hear this should be, more or less, ''when the Chargor has actually defaulted and been closed out'' — and, really, the control of secured collateral held under {{imcsdprov|Control Agreement}} would ordinarily be most suitably dealt ''by that {{imcsdprov|Control Agreement}}''. The clue, surely, is in the name? | ||
Until the {{isdama}} has been fully closed out and the {{isdaprov|Early Termination Amount}} — that is, the total amount due following termination and valuation of all {{isdaprov|Transaction}}s following the default — determined, you don’t definitively know what you are owed, so what business have you got appropriating the Initial Margin? Nor do you have any credit risk over it: it is held at a | Until the {{isdama}} has been fully closed out and the {{isdaprov|Early Termination Amount}} — that is, the total amount due following termination and valuation of all {{isdaprov|Transaction}}s following the default — determined, you don’t definitively know what you are owed, so what business have you got appropriating the Initial Margin? Nor do you have any credit risk over it: it is held at a third party and secured in your favour. ''Cool your jets''. | ||
But that would be too easy and not nearly circuitous enough. How are you meant to keep armies of [[legal eagle]]s employed if it is as straightforward as that? | But having a legal agreement that said something that straightforward would be too easy, and not nearly circuitous enough. How are you meant to keep armies of [[legal eagle]]s employed if it is as straightforward as that? | ||
So {{isda}} confused everything by adding a whole new range of “{{imcsdprov|Access Conditions}}” — just in case these are different from actually executed close out events (why would they be?), and then confabulating, half-heartedly, all kinds of different triggers for this access. | So {{isda}} confused everything by adding a whole new range of “{{imcsdprov|Access Conditions}}” — just in case these are different from actually executed close out events (why would they be?), and then confabulating, half-heartedly, all kinds of different triggers for this access. | ||