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Specified Transaction - ISDA Provision: Difference between revisions
Specified Transaction - ISDA Provision (view source)
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{{fullanat2|isda|Specified Transaction Definition|2002|Specified Transaction Definition|1992}} | {{fullanat2|isda|Specified Transaction Definition|2002|Specified Transaction Definition|1992}} | ||
Used in the {{isdaprov|Default under Specified Transaction}} {{isdaprov|Event of Default}} under Section {{isdaprov|5(a)(v)}} — fondly known to those in the know as {{isdaprov|DUST}}. | |||
{{isdaprov|Specified Transaction}}s, default under which entitles one to close out the ISDA, excludes {{isdaprov|Transactions}} under the ISDA itself. This is for the sensible reason that a default under an ISDA Transaction is covered by elsewhere in the ISDA (eg {{isdaprov|Failure to Pay or Deliver}} and {{isdaprov|Breach of Obligation}} concepts, and it might lead to a perverse result if a {{isdaprov|Transaction}} was not otherwise an {{isdaprov|Event of default}} under any ISDA provision but the {{isdaprov|DUST}} provision, however unlikely that may be. | {{isdaprov|Specified Transaction}}s, default under which entitles one to close out the ISDA, excludes {{isdaprov|Transactions}} under the ISDA itself. This is for the sensible reason that a default under an ISDA Transaction is covered by elsewhere in the ISDA (eg {{isdaprov|Failure to Pay or Deliver}} and {{isdaprov|Breach of Obligation}} concepts, and it might lead to a perverse result if a {{isdaprov|Transaction}} was not otherwise an {{isdaprov|Event of default}} under any ISDA provision but the {{isdaprov|DUST}} provision, however unlikely that may be. | ||