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Template:M summ 2018 CSD 13(h): Difference between revisions
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''Why do you need to appropriate {{imcsdprov|Initial Margin}} before you know if you are actually owed anything? | ''Why do you need to appropriate {{imcsdprov|Initial Margin}} before you know if you are actually owed anything? | ||
====Failing that: “{{imcsdprov|Failure to Pay Early Termination Amount}}”==== | ====Failing that: “{{imcsdprov|Failure to Pay Early Termination Amount}}”==== | ||
(Quick drafting point: this means that a party fails to pay its {{isdaprov|Early Termination Amount}}, not that there is an {{isdaprov|Early Termination Amount}} determined following a {{isdaprov|Failure to Pay | (Quick drafting point: this means that a party fails to pay its {{isdaprov|Early Termination Amount}} once it has been determined, not that there is an {{isdaprov|Early Termination Amount}} determined following only a {{isdaprov|Failure to Pay or Deliver}} {{isdaprov|Event of Default}}.) That being the case, this is — well, if it covered all {{isdaprov|Termination Events}}, would be — the obvious best choice: it means, beyond any doubt the counterparty really has failed, it really did owe something, and it really did fail to pay it. | ||
''Now'' you have all the justification you need to wade in and repossess your counterparty’s initial margin. Only, oddly — infuriatingly — it doesn’t capture finally determined {{isdaprov|Early Termination Amount}}s that were caused by ''non''-{{isdaprov|Events of Default}} (the so-called “{{imcsdprov|Access Condition}}s”). Why, since at this point you have failed to pay the amount, and? Search me, readers. | ''Now'' you have all the justification you need to wade in and repossess your counterparty’s initial margin. Only, oddly — infuriatingly — it doesn’t capture finally determined {{isdaprov|Early Termination Amount}}s that were caused by ''non''-{{isdaprov|Events of Default}} (the so-called “{{imcsdprov|Access Condition}}s”). Why, since at this point you have failed to pay the amount, and? Search me, readers. | ||