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

{{eqderivprov|12.9(b)(v)}} If "{{eqderivprov|Increased Cost of Stock Borrow}}" is specified in the related {{eqderivprov|Confirmation}} to <br>be applicable to a Transaction, then upon the occurrence of such an event the {{eqderivprov|Hedging Party}} will <br>give prompt notice to the {{eqderivprov|Non-Hedging Party}} that an {{eqderivprov|Increased Cost of Stock Borrow}} has <br> occurred and that a {{eqderivprov|Price Adjustment}} will be made to the {{eqderivprov|Transaction}}. The {{eqderivprov|Non-Hedging Party}} <br>shall, within two {{eqderivprov|Scheduled Trading Days}} of receipt of the notice of Increased Cost of Stock <br>Borrow and corresponding {{eqderivprov|Price Adjustment}}, notify the {{eqderivprov|Hedging Party}} that it elects to (A) agree <br>to amend the relevant {{eqderivprov|Transaction}} to take into account the {{eqderivprov|Price Adjustment}}, (B) pay the <br>{{eqderivprov|Hedging Party}} an amount determined by the {{eqderivprov|Calculation Agent}} that corresponds to the Price <br>Adjustment or (C) terminate the {{eqderivprov|Transaction}} as of that second {{eqderivprov|Scheduled Trading Day}}. If such <br>notice is not given by the end of that second {{eqderivprov|Scheduled Trading Day}}, then the {{eqderivprov|Hedging Party}} may <br>give notice that it elects to terminate the {{eqderivprov|Transaction}}, specifying the date of such termination, <br>which may be the same day that the notice of termination is effective. If either party elects to <br>terminate the {{eqderivprov|Transaction}}, the {{eqderivprov|Determining Party}} will determine the {{eqderivprov|Cancellation Amount}} <br>payable by one party to the other. Within this period, the {{eqderivprov|Non-Hedging Party}} may, in order to <br>avoid a {{eqderivprov|Price Adjustment}} or termination with respect to the {{eqderivprov|Transaction}}, (X) lend the Hedging <br>Party, subject to the conditions below, {{eqderivprov|Shares}} in an amount equal to the {{eqderivprov|Hedging Shares}} at a rate <br>equal to or less than the {{eqderivprov|Initial Stock Loan Rate}} or (Y) refer the {{eqderivprov|Hedging Party}} to a {{eqderivprov|Lending Party}} <br>that lends the {{eqderivprov|Hedging Party Shares}} in an amount equal to the {{eqderivprov|Hedging Shares}} at a rate equal to <br>or less than the {{eqderivprov|Initial Stock Loan Rate}}. <br>