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Events of Default - ISDA Provision: Difference between revisions
→Types of Events of Default
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Given that cross defaults may have artificially low {{isdaprov|Threshold Amount}}s (as do some of ours) and are set at levels where actual counterparties owning those rights directly are most unlikely to exercise them, it should not be a surprise to find parties resistant to notifying us about these. | Given that cross defaults may have artificially low {{isdaprov|Threshold Amount}}s (as do some of ours) and are set at levels where actual counterparties owning those rights directly are most unlikely to exercise them, it should not be a surprise to find parties resistant to notifying us about these. | ||
This becomes a | This becomes a credit call but a practical recommendation would be: | ||
#Impose notification requirement only on "active" termination/default events which are non-public and CP has no excuse for not having monitored them and counterparty has actually exercised; and | #Impose notification requirement only on "active" termination/default events which are non-public and CP has no excuse for not having monitored them and counterparty has actually exercised; and | ||