Template:2014 ISDA Credit Derivatives Definitions 2.10

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Section 2.10 Substitute Reference Obligation. “Substitute Reference Obligation” means , with respect to a Non-Standard Reference Obligation to which a Substitution Event has occurred, the obligation that will replace the Non-Standard Reference Obligation, determined by the Calculation Agent as follows:

(a) The Calculation Agent shall (after consultation with the parties) identify the Substitute Reference Obligation in accordance with Sections 2.10(c), (d) and (e) to replace the Non-Standard Reference Obligation; provided that the Calculation Agent will not identify an obligation as the Substitute Reference Obligation if, at the time of the determination, such obligation has already been rejected as the Substitute Reference Obligation by the relevant Credit Derivatives Determinations Committee and such obligation has not changed materially since the date of the relevant DC Resolution.
(b) If any of the events set forth under Sections 2.11(a)(i) or (iii) (Substitution Event ) have occurred with respect to the Non-Standard Reference Obligation, the Non-Standard Reference Obligation will cease to be the Reference Obligation (other than for purposes of the “Not SubordinatedObligation Characteristic or “Not SubordinatedDeliverable Obligation Characteristic and Section 2.10(c)(ii)). If the event set forth in Section 2.11(a)(ii) (Substitution Event ) has occurred with respect to the Non-Standard Reference Obligation and no Substitute Reference Obligation is available, the Non-Standard Reference Obligation will continue to be the Reference Obligation until the Substitute Reference Obligation is identified or, if earlier, until any of the events set forth under Sections 2.11(a)(i) or (a)(iii) (Substitution Event ) occur with respect to such Non-Standard Reference Obligation.
(c) The Substitute Reference Obligation shall be an obligation that on the Substitution Date:
(i) is a Borrowed Money obligation of the Reference Entity (either directly or as provider of a guarantee);
(ii) satisfies the Not Subordinated [[Deliverable Obligation Characteristic - Credit Derivatives Provision|Deliverable Obligation Characteristic]] as of the date it was issued or incurred (without reflecting any change to the priority of payment after such date) and on the Substitution Date; and
(iii)
(A) if the Non-Standard Reference Obligation was a Conforming Reference Obligation when issued or incurred and immediately prior to the Substitution Event Date:
(I) is a Deliverable Obligation (other than a Loan) determined in accordance with Section 3.2(a) (Deliverable Obligation); or if no such obligation is available,
(II) is a Loan (other than a Private-side Loan) which constitutes a Deliverable Obligation determined in accordance with Section 3.2(a) (Deliverable Obligation);
(B) if the Non-Standard Reference Obligation was a Bond (or any other Borrowed Money obligation other than a Loan) which was a Non-Conforming Reference Obligation when issued or incurred and/or immediately prior to the Substitution Event Date:
(I) is a Non-Conforming Substitute Reference Obligation (other than a Loan); or if no such obligation is available,
(II) is a Deliverable Obligation (other than a Loan) determined in accordance with Section 3.2(a) (Deliverable Obligation); or if no such obligation is available,
(III) is a Non-Conforming Substitute Reference Obligation which is a Loan (other than a Private-side Loan); or if no such obligation is available,
(IV) is a Loan (other than a Private-side Loan) which constitutes a Deliverable Obligation determined in accordance with Section 3.2(a) (Deliverable Obligation); or
(C) if the Non-Standard Reference Obligation was a Loan which was a Non-Conforming Reference Obligation when incurred and/or immediately prior to the Substitution Event Date:
(I) is a Non-Conforming Substitute Reference Obligation which is a Loan (other than a Private-side Loan); or if no such obligation is available,
(II) is a Non-Conforming Substitute Reference Obligation (other than a Loan); or if no such obligation is available,
(III) is a Deliverable Obligation (other than a Loan) determined in accordance with Section 3.2(a) (Deliverable Obligation); or if no such obligation is available,
(IV) is a Loan (other than a Private-side Loan) which constitutes a Deliverable Obligation determined in accordance with Section 3.2(a) (Deliverable Obligation).
(d) If more than one potential Substitute Reference Obligation is identified pursuant to the process described in Section 2.10(c), the Substitute Reference Obligation will be the potential Substitute Reference Obligation that most closely preserves the economic equivalent of the delivery and payment obligations of the parties to the Credit Derivative Transaction, as determined by the Calculation Agent (after consultation with the parties). The Calculation Agent will notify the parties of the Substitute Reference Obligation as soon as reasonably practicable after it has been identified in accordance with Section 2.10(c) and the Substitute Reference Obligation shall replace the Non-Standard Reference Obligation immediately upon such notification.
(e) If a Substitution Event has occurred with respect to the Non-Standard Reference Obligation and the Calculation Agent determines (after consultation with the parties) that no Substitute Reference Obligation is available for the Non-Standard Reference Obligation, then, subject to Section 2.10(a) and notwithstanding the fact that the Non-Standard Reference Obligation may have ceased to be the Reference Obligation in accordance with Section 2.10(b), the Calculation Agent shall continue to attempt to identify the Substitute Reference Obligation.