Specified Indebtedness - ISDA Provision: Difference between revisions

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{{isdaanat|Specified Indebtedness}}
{{manual|MI|2002|Specified Indebtedness|Definition of|Specified Indebtedness|medium}}
A simple and innocuous enough provision. Almost redundant — why go to the trouble of defining borrowed money as another term? (because some firms, in their infinite wisdom, will wish to change the definition of [[borrowed money]] to include derivatives, other trading exposures, or even any payment obligations of any kind, and  {{isdaprov|Specified Indebtedness}} is a (somewhat) less loaded label than “borrowed money”)<ref>By the way, the [[JC]]’s personal view is that one should ''not'' widen the definition beyond the normal conception of “[[borrowed money]]”, and if one is a [[Bank/Credit Institution|bank]], may wish to ''narrow'' it, to exclude [[Deposit|deposits]]. See the article on ISDA’s {{isdaprov|Cross Default}} {{gmslaprov|Event of Default}} for more information.</ref>.
 
In any case, what should one make of “[[borrowed money]]”? Could it include [[repo]] and stock loan]] obligations? Amounts owed to trade creditors? (In each case no, according to Simon Firth - see [[borrowed money|here]])
 
Of particular interest in the debate on {{isdaprov|Cross Default}}. Please refer to that section for a fuller discussion. see also the somewhat clumsier (but materially similar) definition of {{efetprov|Specified Indebtedness}} in the {{efetma}}.
{{sa}}
*{{isdaprov|Cross Default}} ({{isdama}})
*[[cross default]] (generally)
 
{{ref}}

Revision as of 18:49, 19 March 2020

2002 ISDA Master Agreement
A Jolly Contrarian owner’s manual™

Resources and navigation

[[{{{1}}} - 1992 ISDA Provision|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 • (a) (b) (c) | 2 • (a) (b) (c) (d) | 3 • (a) (b) (c) (d) (e) (f) (g) | 4 • (a) (b) (c) (d) (e) | 5 • 5(a) Events of Default: 5(a)(i) Failure to Pay or Deliver 5(a)(ii) Breach of Agreement 5(a)(iii) Credit Support Default 5(a)(iv) Misrepresentation 5(a)(v) Default Under Specified Transaction 5(a)(vi) Cross Default 5(a)(vii) Bankruptcy 5(a)(viii) Merger Without Assumption 5(b) Termination Events: 5(b)(i) Illegality 5(b)(ii) Force Majeure Event 5(b)(iii) Tax Event 5(b)(iv) Tax Event Upon Merger 5(b)(v) Credit Event Upon Merger 5(b)(vi) Additional Termination Event (c) (d) (e) | 6 • (a) (b) (c) (d) (e) (f) | 7 | 8 • (a) (b) (c) (d) | 9 • (a) (b) (c) (d) (e) (f) (g) (h) | 10 | 11 | 12 • (a) (b) | 13 • (a) (b) (c) (d) | 14 |

Index: Click ᐅ to expand:
2002 ISDA
1992 ISDA

Definition of Specified Indebtedness in a Nutshell™

Use at your own risk, campers!

Full text of Definition of Specified Indebtedness

“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

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

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Content and comparisons

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.

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Summary

See the Cross Default page which discusses Specified Indebtedness in detail — gory detail, if you are a premium subscriber — in the only context in which it appears: as the type of contract to which a Cross Default applies.

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General discussion

Template:M gen 2002 ISDA Specified Indebtedness

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See also

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References

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