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Bankruptcy - ISDA Provision: Difference between revisions
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===Analysis=== | ===Analysis=== | ||
====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}}*.) | |||
Otherwise the ISDA ''bankruptcy'' clause is a much loved and well used market standard and you often see it being imported into other agreements precisely because everyone knows it and no one really argues about it. | |||
*This, by the way, is an ISDA In-joke. Cross Default is totally pointless. | |||
====[[Grace period]]==== | ====[[Grace period]]==== | ||
Note the contraction of the grace period from 30 days to 15 days between the {{1992ma}} and the {{2002ma}}. Note also, for students of history, the problematic {{isdaprov|Automatic Early Termination}} situation under the {{1987ma}}. | Note the contraction of the grace period from 30 days to 15 days between the {{1992ma}} and the {{2002ma}}. Note also, for students of history, the problematic {{isdaprov|Automatic Early Termination}} situation under the {{1987ma}}. | ||