Tax Event - ISDA Provision: Difference between revisions

Tax Event - ISDA Provision (view source)

374 bytes removed , 11 April 2016

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 ===Commentary===
 Note, unhelpfully, the subpara reference in the {{1992ma}} is (1) and (2) and in the {{2002ma}} is (A) and (B). Note, also unhelpfully, that this paragraph is a bastard to understand. Let's have a look then:
+{{nuts|ISDA|Tax Event}}
-{{quote|A "'''{{isdaprov|Tax Event}}'''" is a {{isdaprov|Termination Event}} whereby, following a change in tax law or practice after any trade date, an "{{isdaprov|Affected Party}}" is likely to have to either
-:(1) [[Gross Up]] an {{isdaprov|Indemnifiable Tax}} deduction or
-:(2) receive a payment net of {{isdaprov|Tax}} which the {{isdaprov|Non-Affected Party}} is not required to Gross Up.}}
 Not such a bastard after all, then. In the context of CCP, you typically add a third limb, which is along the lines of