Specified Indebtedness - 1992 ISDA Provision

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1992 ISDA Master Agreement

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Specified Indebtedness in a Nutshell

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Specified Indebtedness in all its glory

Specified Indebtedness” means, subject to the Schedule, any obligation (whether present or future, contingent or otherwise, as principal or surety or otherwise) in respect of borrowed money.

Related agreements and comparisons

Related Agreements
Click here for the text of Section Specified Indebtedness in the 2002 ISDA
For what it’s worth, oh ye of little faith: Click to compare this section in the 1992 ISDA and 2002 ISDA.

Resources and Navigation


No change to this definition between the 1992 ISDA and the 2002 ISDA. This clause is only really relatable in the context of Cross Default Event of Default, of which it is a component.



Specified Indebtedness is a simple and innocuous enough provision. Almost redundant, you’d think — why go to the trouble of defining “borrowed money” as another term? (Answer: because many firms, in their wisdom, will wish to change the definition in the Schedule to include derivatives, other trading exposures, things owed to their affiliates, or even any payment obligations of any kind, and for those people, “Specified Indebtedness” is a (somewhat) less loaded term.


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  • The JC’s famous Nutshell summary of this clause
  • Should derivatives be included as “Specified Indebtedness”?
  • Would stock loans and repos count as “borrowed money”?
  • What about initial margin?

See also

Template:M sa 1992 ISDA Specified Indebtedness