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Template:Isda 2(a)(iii) summ: Difference between revisions
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===Does not apply to {{{{{1}}}|Termination Events}}=== | ===Does not apply to {{{{{1}}}|Termination Events}}=== | ||
Since most {{isdama}}s that reach the life support machine in an ICU get there by dint of a {{{{{1}}}|Failure to Pay}} or {{{{{1}}}|Bankruptcy}} this does not, in point of fact, amount to much, but it is worth noting that while {{{{{1}}}|Event of Default}}s — and even events that are not yet but with the passing of time might ''become'' {{{{{1}}}|Events of Default}} — can trigger a {{{{{1}}}|2(a)(iii)}} suspension, a mere Section {{{{{1}}}|5(b)}} {{{{{1}}}|Termination Event}} — even a catastrophic one like an {{{{{1}}}|Additional Termination Event}} (such as a [[NAV trigger]], [[Key person clause|key person event]] or some such) — cannot. This might rile and unnerve [[credit officer]]s, by nature an easily perturbed lot, but given our arguments below for what a train-wreck the whole {{{{{1}}}|2(a)(iii)}} thing is, those of stabler personalities will consider this basically a good thing. | Since most {{isdama}}s that reach the life support machine in an ICU get there by dint of a {{{{{1}}}|Failure to Pay}} or {{{{{1}}}|Bankruptcy}} this does not, in point of fact, amount to much, but it is worth noting that while {{{{{1}}}|Event of Default}}s — and even events that are not yet but with the passing of time might ''become'' {{{{{1}}}|Events of Default}} — can trigger a {{{{{1}}}|2(a)(iii)}} suspension, a mere Section {{{{{1}}}|5(b)}} {{{{{1}}}|Termination Event}} — even a catastrophic one like an {{{{{1}}}|Additional Termination Event}} (such as a [[NAV trigger]], [[Key person clause|key person event]] or some such) — cannot. This might rile and unnerve [[credit officer]]s, by nature an easily perturbed lot, but given our arguments below for what a train-wreck the whole {{{{{1}}}|2(a)(iii)}} thing is, those of stabler personalities will consider this basically a good thing. | ||
Nevertheless the [[JC]] has seen valiant efforts to insert {{isdaprov|Additional Termination Events}} to section {{isdaprov|2(a)(iii)}}, and — ''quel horreur'' — ''Potential'' Additional Termination Events, a class of things that do not exist outside the laboratory, and must therefore be defined. All this for the joy of invoking a clause that doesn’t make any sense in the first place. | |||
“Some things are better left unsaid,” said no ISDA lawyer ever. | |||
===No notice of suspension required=== | ===No notice of suspension required=== | ||