Section 2(a)(iii) - ISDA Provision: Difference between revisions

Section 2(a)(iii) - ISDA Provision (view source)

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 In a {{nutshell}}, what this does is:
 *Allows the {{isdaprov|Defaulting Party}} to notify of an {{isdaprov|Event of Default}} or {{isdaprov|Potential Event of Default}}.
-*That in turn starts the clock running on a period (to be agreed by the parties but (see Chris' note - likely to be no more than a month) in which the {{isdaprov|Non-defaulting Party}} has to decide what to do. During that period the Non-Defaulting retains its traditional right under 2(a)(iii) to suspend payments under the {{isdama}}.
+*That in turn starts the clock running on a period (to be agreed by the parties but likely to be no more than a month) in which the {{isdaprov|Non-defaulting Party}} has to decide what to do. During that period the Non-Defaulting retains its traditional right under 2(a)(iii) to suspend payments under the {{isdama}}.
 *upon expiry of that period the {{isdaprov|Event of Default}} no longer qualifies as a [[condition precedent]] to payment under the Section 2(a)(iii), so if the Non-Defaulting Party has not exercised its right to terminate, it must resume performance of the transaction.
 {{isdaanatomy}}