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Note {{dust}} doesn't generally pick up contracts in the nature of [[borrowed money]] or [[indebtedness]], because these are picked up under the wider scope of the {{isdaprov|Cross Default}} provision which, of course, applies to indebtedness owed to anyone, not just by your counterparty to you. Still, there is weirdness: {{isdaprov|Cross Default}} contemplates a {{isdaprov|Threshold Amount}} before it can be triggered. {{isdaprov|DUST}} doesn't. So this leads to an odd gap: | Note {{dust}} doesn't generally pick up contracts in the nature of [[borrowed money]] or [[indebtedness]], because these are picked up under the wider scope of the {{isdaprov|Cross Default}} provision which, of course, applies to indebtedness owed to anyone, not just by your counterparty to you. Still, there is weirdness: {{isdaprov|Cross Default}} contemplates a {{isdaprov|Threshold Amount}} before it can be triggered. {{isdaprov|DUST}} doesn't. So this leads to an odd gap: | ||
A (sub Threshold Amount) default under {{isdaprov|Specified Indebtedness}} between the two contractual parties would not entitle the | A (sub Threshold Amount) default under {{isdaprov|Specified Indebtedness}} ''between the two contractual parties'' would not entitle the innocent party to close out, but a default under any other derivative transaction between them (i.e., as dfefined in {{isdaprov|Specified Transaction}}) ''would'' - even if the value of the payment default was smaller than the default on borrowed money. Kind of counterintuitive. | ||
{{isdaanatomy}} | {{isdaanatomy}} | ||
*{{isdaprov|Default under Specified Transaction}} | *{{isdaprov|Default under Specified Transaction}} |