Specified Entity - ISDA Provision

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2002 ISDA Master Agreement

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Specified Entity in a Nutshell

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Specified Entity in all its glory

Specified Entity” has the meaning specified in the Schedule.

Related agreements and comparisons

Click here for the text of Section Specified Entity in the 1992 ISDA
Template:Isdadiff Specified Entity

Resources and Navigation

This provision in the 1992

Resources Wikitext | Nutshell wikitext | 1992 ISDA wikitext | 2002 vs 1992 Showdown | 2006 ISDA Definitions | 2008 ISDA | JC’s ISDA code project
Navigation Preamble | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14
Events of Default: 5(a)(i) Failure to Pay or Deliver5(a)(ii) Breach of Agreement5(a)(iii) Credit Support Default5(a)(iv) Misrepresentation5(a)(v) Default Under Specified Transaction5(a)(vi) Cross Default5(a)(vii) Bankruptcy5(a)(viii) Merger without Assumption
Termination Events: 5(b)(i) Illegality5(b)(ii) Force Majeure Event5(b)(iii) Tax Event5(b)(iv) Tax Event Upon Merger5(b)(v) Credit Event Upon Merger5(b)(vi) Additional Termination Event

Index: Click to expand:



Same concept in both versions of the ISDA Master Agreement only with different clause numberings. Specified Entity is relevant to:

And of course the Absence of Litigation representation. Let’s not forget that.

Each party designates its Specified Entities for each of these events in Part 1(a) of the Schedule, which gives the Schedule its familiar layout:

(a)Specified Entity” means in relation to Party A for the purpose of:―

Section 5(a)(v), [SPECIFY].
Section 5(a)(vi), [SPECIFY].
Section 5(a)(vii), [SPECIFY].
Section 5(b)(v), [SPECIFY].

and in relation to Party B for the purpose of:―

Section 5(a)(v), [SPECIFY].
Section 5(a)(vi), [SPECIFY].
Section 5(a)(vii), [SPECIFY].
Section 5(b)(v), [SPECIFY].



Specified Entity is so (~ cough ~) important that it is literally the first thing you see when you regard an ISDA Schedule.

Painstakingly set out, separately for Events of Default (namely DUST (Section 5(a)(v)), Cross Default (Section 5(a)(vi)) and Bankruptcy (Section 5(a)(vii)) and the one Termination Event (Credit Event Upon Merger (Section 5(b)(v) — as if you would want different Affiliates to trigger this event depending on precisely how they cork-screwed into the side of a hill), and jointly for the “Absence of Litigation” representation in Section 3(c) of the 2002 ISDA.

A Specified Entity is any affiliate (or, in theory at any rate, even a non-affiliate, if your risk officer is a total cretin) of a counterparty to an ISDA Master Agreement which is designated in the relevant Schedule.

It is relevant to the definition of Cross Default and Default under Specified Transaction in that it widens the effect of those provisions to include defaults by the parties specified.

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  • The JC’s famous Nutshell summary of this clause

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See also