Template:2002 ISDA Equity Derivatives Definitions 12.9(b)(ii): Difference between revisions

:{{eqderivprov|12.9(b)(ii)}} If “'''{{eqderivprov|Failure to Deliver}}'''” is specified in the related {{eqderivprov|Confirmation}} to be applicable to a {{eqderivprov|Transaction}}, then such event shall not constitute an {{eqderivprov|Event of Default}} under the [[ISDA Master Agreement]], but upon the occurrence of such an event, the party required to deliver the relevant {{eqderivprov|Shares}} (the “'''{{eqderivprov|Delivering Party}}'''”) shall (A) give the other party (the “'''{{eqderivprov|Receiving Party}}'''”) notice that a {{eqderivprov|Failure to Deliver}} has occurred within one {{eqderivprov|Clearance System Business Day}} of the relevant {{eqderivprov|Exercise Date}} in the case of an {{eqderivprov|Option Transaction}} and at least one {{eqderivprov|Settlement Cycle}} prior to the {{eqderivprov|Settlement Date}} in the case of a {{eqderivprov|Forward Transaction}} or {{eqderivprov|Equity Swap Transaction}} and (B) deliver on the {{eqderivprov|Settlement Date}} to the {{eqderivprov|Receiving Party}} such number of {{eqderivprov|Shares}} that it can deliver on such date. The {{eqderivprov|Receiving Party}}’s obligation to make any corresponding payment or delivery to the {{eqderivprov|Delivering Party}} shall be reduced in proportion to the number of {{eqderivprov|Shares}} it receives from the {{eqderivprov|Delivering Party}}. In respect of a {{eqderivprov|European Option}} or a {{eqderivprov|Forward Transaction}}, the {{eqderivprov|Receiving Party}} may then elect to terminate the {{eqderivprov|Transaction}} by giving notice to the {{eqderivprov|Delivering Party}} and the {{eqderivprov|Transaction}} will terminate on the date that such notice is effective. The {{eqderivprov|Receiving Party}} (who shall be the {{eqderivprov|Determining Party}}) shall determine the {{eqderivprov|Cancellation Amount}} payable in relation to such terminated {{eqderivprov|Transaction}} (after consideration of any partial delivery). In respect of an {{eqderivprov|American Option}} or a {{eqderivprov|Bermuda Option}}, the {{eqderivprov|Receiving Party}} may then elect to terminate that part of the {{eqderivprov|Transaction}} consisting of the exercised {{eqderivprov|Option}}s by giving notice to the {{eqderivprov|Delivering Party}}. On the date that such notice is effective, a {{eqderivprov|Transaction}} consisting of the exercised {{eqderivprov|Option}}s only shall be terminated and the {{eqderivprov|Receiving Party}} (who shall be the {{eqderivprov|Determining Party}}) shall determine the {{eqderivprov|Cancellation Amount}} payable in relation to such terminated {{eqderivprov|Transaction}} (after consideration of any partial delivery). In respect of an {{eqderivprov|Equity Swap Transaction}}, the {{eqderivprov|Receiving Party}} may then elect to terminate that part of the {{eqderivprov|Transaction}} consisting of the {{eqderivprov|Number of Shares to be Delivered }} or {{eqderivprov|Number of Baskets to be Delivered}}, [[as the case may be]], on that {{eqderivprov|Settlement Date}} by giving notice to the {{eqderivprov|Delivering Party}}. On the date that such notice is effective, a {{eqderivprov|Transaction}} consisting of the {{eqderivprov|Number of Shares to be Delivered }} or {{eqderivprov|Number of Baskets to be Delivered}}, [[as the case may be]], on that {{eqderivprov|Settlement Date}} only shall be deemed to have been terminated on such {{eqderivprov|Settlement Date}} and the {{eqderivprov|Receiving Party}} (who shall be the {{eqderivprov|Determining Party}}) shall determine the {{eqderivprov|Cancellation Amount}} payable in relation to such terminated {{eqderivprov|Transaction}} (after consideration of any partial delivery). In respect of an {{eqderivprov|American Option}} or a {{eqderivprov|Bermuda Option}}, in each case to which {{eqderivprov|Multiple Exercise}} is applicable and upon which less than all {{eqderivprov|Option}}s have been exercised or deemed exercised on the relevant {{eqderivprov|Exercise Date}}, or in respect of an {{eqderivprov|Equity Swap Transaction}} in relation to which one or more {{eqderivprov|Settlement Date}}s have not occurred, the {{eqderivprov|Receiving Party}} may elect within one {{eqderivprov|Settlement Cycle}} of the {{eqderivprov|Settlement Date}} on which the {{eqderivprov|Transaction}} was partially terminated to terminate the remaining {{eqderivprov|Transaction}} upon two {{eqderivprov|Scheduled Trading Day}}s’ notice to the {{eqderivprov|Delivering Party}}, in which event the {{eqderivprov|Transaction}} shall terminate on the date that such notice is effective and the {{eqderivprov|Receiving Party}} (who shall be the {{eqderivprov|Determining Party}}) shall determine the {{eqderivprov|Cancellation Amount}} payable in relation to such terminated {{eqderivprov|Transaction}}.  <br>