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Bankruptcy - ISDA Provision: Difference between revisions
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*'''Contracted [[grace period]]''': The allowable period for dismissal of an insolvency petition (under 5(a)(vii)(4)) or the exercise of security over assets (under 5(a)(vii)(7)) is compressed from 30 days to 15 days. This, in aggregate over the whole global market, keeps many a negotiator in meaningful* employment. | *'''Contracted [[grace period]]''': The allowable period for dismissal of an insolvency petition (under 5(a)(vii)(4)) or the exercise of security over assets (under 5(a)(vii)(7)) is compressed from 30 days to 15 days. This, in aggregate over the whole global market, keeps many a negotiator in meaningful* employment. | ||
< | <sup>*</sup>"meaningful" is in the eye of the beholder, you understand. | ||
====Market standard==== | ====Market standard==== | ||
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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. | 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. | ||
< | <sup>*</sup>This, by the way, is an ISDA In-joke. In face {{isdaprov|Cross Default}} is almost 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}}. | ||