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===Relevance of Section {{isdaprov|6}} to the peacetime operation of the {{csa}}=== | ===Relevance of Section {{isdaprov|6}} to the peacetime operation of the {{csa}}=== | ||
The calculation of Exposure under the {{csa}} is modelled on the Section {{isdaprov|6(e)(ii)}} termination methodology following a {{isdaprov|Termination Event}} where there is one {{isdaprov|Affected Party}}, which in turn tracks the Section {{isdaprov|6(e)(i)}} methodology following an {{isdaprov|Event of Default}}, only taking [[mid-market valuation]]s and not those on the {{isdaprov|Non-Defaulting Party}}’s side. | The calculation of Exposure under the {{csa}} is modelled on the Section {{isdaprov|6(e)(ii)}} termination methodology following a {{isdaprov|Termination Event}} where there is one {{isdaprov|Affected Party}}, which in turn tracks the Section {{isdaprov|6(e)(i)}} methodology following an {{isdaprov|Event of Default}}, only taking [[mid-market valuation]]s and not those on the {{isdaprov|Non-Defaulting Party}}’s side. | ||
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::(c) {{isdaprov|Unpaid Amounts}} due to the Defaulting Party.<br> | ::(c) {{isdaprov|Unpaid Amounts}} due to the Defaulting Party.<br> | ||
This is interesting because, as of its {{isdadefsprov|Termination Date|2006}} the {{isdaprov|Transaction}} may be no more, but until those final exchanges are settled the obligations they represent — Unpaid | This is interesting because, as of its {{isdadefsprov|Termination Date|2006}} the {{isdaprov|Transaction}} may be no more, but until those final exchanges are settled the obligations they represent — “{{isdaprov|Unpaid Amount}}s” in the argot of Section {{isdaprov|6(e)}} — still exist and are included in the calculation of the {{csaprov|Exposure}}. | ||
Now, on the day you are meant to pay that final payment, which when (ahem — ''if'') settled, you would expect to reduce your exposure to reduce, but you will call for credit support assuming it has not been paid. By the time the |