Insolvency Filing - Equity Derivatives Provision: Difference between revisions

Insolvency Filing - Equity Derivatives Provision (view source)

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 {{eqderivsnap|12.9(a)(iv)}}
 ====Commentary====
+From the User's Guide:
+'''{{eqderivprov|Insolvency Filing}}'''. Section {{eqderivprov|12.9(a)(iv)}} defines the third possible {{eqderivprov|Additional Disruption Event}}, {{eqderivprov|Insolvency Filing}}. Insolvency Filing is defined as an insolvency or bankruptcy proceeding instituted by the Issuer or a regulator, supervisor or similar official with primary insolvency or regulatory jurisdiction over the Issuer. An {{eqderivprov|Insolvency Filing}} should be distinguished from the much narrower definition of {{eqderivprov|Insolvency}} as set forth in Section {{eqderivprov|12.6(a)(ii)}}, discussed above. Unlike the comparable provision in the {{isdma}}, an {{eqderivprov|Insolvency Filing}} specified as an {{eqderivprov|Additional Disruption Event}} has no [[grace period]] associated with it and is not triggered by an invohmtary f11ing by creditors (i.e., persons other than the {{eqderivprov|Issuer}} or a regulatory, supervisor or other sinlilar official) that has not
+been dismissed within 15 days.
+Section {{eqderivprov|12.9(b)(i)}} sets forth the consequence of an {{eqderivprov|Insolvency Filing}}. As with {{eqderivprov|Change in Law}}, if an {{eqderivprov|Insolvency Filing}} occurs, either party may elect to terminate the {{eqderivprov|Transaction}} upon at least two {{eqderivprov|Scheduled Trading Days}}' notice to the other party. Upon the provision of such notice, the {{eqderivprov|Transaction}} will terminate and the {{eqderivprov|Determining Party}} will determine the {{eqderivprov|Cancellation Amount}} payable by one party to the other party.
 ====See Also====
 {{eqderivanatomy}}