Specified Indebtedness - ISDA Provision: Difference between revisions

Latest revision as of 18:55, 5 January 2024

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-{{isdaanat|Specified Indebtedness}}
+#redirect[[Cross Default - ISDA Provision]]
-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}}