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Template:Csa Conditions Precedent summ: Difference between revisions
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===Conditions precedent==== | |||
====''Another'' flawed asset clause?==== | ====''Another'' flawed asset clause?==== | ||
Aren’t the Conditions precedent dealt with in Section {{isdaprov|2(a)(iii)}} of the ISDA? | Aren’t the Conditions precedent dealt with in Section {{isdaprov|2(a)(iii)}} of the ISDA? | ||
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Well, they are — if your credit support annex counts as a Transaction under the ISDA, which the ''[[title transfer]]'' CSAs do (eg, the English law {{1995csa}} and the {{2016csa}}), but the ''security interest'' CSAs (the New York law {{1994csa}} and {{2016nycsa}} and the English law {{2018imcsd}}) do not. | Well, they are — if your credit support annex counts as a Transaction under the ISDA, which the ''[[title transfer]]'' CSAs do (eg, the English law {{1995csa}} and the {{2016csa}}), but the ''security interest'' CSAs (the New York law {{1994csa}} and {{2016nycsa}} and the English law {{2018imcsd}}) do not. | ||
====={{2018imcsd}}===== | |||
In the {{2018imcsd}} there is a curious reference to “provisions requiring the return of zero-Valued Posted Credit Support (IM)”. It is not entirely clear why ineligible {{csaprov|Credit Support}} (that hence has a {{csaprov|Value}} of zero), since it doesn’t count numerically into the {{csaprov|Value}} of the {{csaprov|Posted Credit Support (IM)}}) should be covered, as on its own theory of the game the Secured Party assigns no value to this collateral and has no justification for holding onto it — but on the other hand the argument is “well, you are going ''[[tetas arriba]]'' so frankly anything of yours that I hold I’m damn well keeping and selling for anything I can get for it.” | |||
The latter argument, we fancy, will prevail. | The latter argument, we fancy, will prevail. | ||