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Template:Failure to pay procedure: Difference between revisions
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===An {{{{{1}}}|Early Termination Date}}: ''Now'' you can send your Section {{{{{1}}}|6(a)}} notice=== | ===An {{{{{1}}}|Early Termination Date}}: ''Now'' you can send your Section {{{{{1}}}|6(a)}} notice=== | ||
At the expiry of this [[grace period]], you finally have a fully operational {{{{{1}}}|Event of Default}}. Now Section {{{{{1}}}|6(a)}} gives you the right, by ''not more than 20 days’ notice''<ref name="20days">See discussion on at Section {{ | At the expiry of this [[grace period]], you finally have a fully operational {{{{{1}}}|Event of Default}}. Now Section {{{{{1}}}|6(a)}} gives you the right, by ''not more than 20 days’ notice''<ref name="20days">See discussion on at Section {{isdaprov|6(a)}} about the silliness of that time limit.</ref> to designate an {{{{{1}}}|Early Termination Date}} for all outstanding {{isdaprov|Transaction}}s. | ||
So, at some point in the next twenty days<ref name="20days"/> there will be a final reckoning and one Party will pay the other the {{isdaprov|Early Termination Amount}}.<ref>By a striking oversight, not actually so named in the {{1992ma}}.</ref>But we have a ways to go before we even know what that amount will be. But observe: the payment date is now locked in. Time to get your skates on and start closing out {{{{{1}}}|Transactions}}. | So, at some point in the next twenty days<ref name="20days"/> there will be a final reckoning and one Party will pay the other the {{isdaprov|Early Termination Amount}}.<ref>By a striking oversight, not actually so named in the {{1992ma}}.</ref>But we have a ways to go before we even know what that amount will be. But observe: the payment date is now locked in. Time to get your skates on and start closing out {{{{{1}}}|Transactions}}. | ||
===Determine {{{{{1}}}|Close-out Amount}}s<ref name="close out amounts">Or their equivalents under the {{1992ma}}, of course.</ref>=== | ===Determine {{{{{1}}}|Close-out Amount}}s<ref name="close out amounts">Or their equivalents under the {{1992ma}}, of course.</ref>=== | ||
Now armed with our crystalised {{{{{1}}}|Failure to Pay or Deliver}} {{{{{1}}}|Event of Default}} and with an {{{{{1}}}|Early Termination Date}} to target, we go directly to Section {{{{{1}}}|6(e)}}, noting as we fly over it, that Section {{{{{1}}}|6(c)}} reminds us [[for the avoidance of doubt]] that even if the {{{{{1}}}|Event of Default}} which triggers the {{{{{1}}}|Early Termination Date}} evaporates in the meantime — these things happen, okay? — yon {{{{{1}}}|Defaulting Party}}’s goose is still irretrievably cooked.<ref>If [[Credit department|Credit]] suddenly gets executioner’s remorse and wants to let the | Now armed with our crystalised {{{{{1}}}|Failure to Pay or Deliver}} {{{{{1}}}|Event of Default}} and with an {{{{{1}}}|Early Termination Date}} to target, we go directly to Section {{{{{1}}}|6(e)}}, noting as we fly over it, that Section {{{{{1}}}|6(c)}} reminds us [[for the avoidance of doubt]] that even if the {{{{{1}}}|Event of Default}} which triggers the {{{{{1}}}|Early Termination Date}} evaporates in the meantime — these things happen, okay? — yon {{{{{1}}}|Defaulting Party}}’s goose is still irretrievably cooked.<ref>If [[Credit department|Credit]] suddenly gets executioner’s remorse and wants to let the Defaulting Party off), the Non-defaulting Party will have to expressly terminate the close-out process, preferably by written notice. There’s an argument — though it is hard to picture the time or place on God’s green earth where a Defaulting Party would make it — that cancelling an in-flight close out is no longer exclusively in the Defaulting Party’s gift, and requires the NDP’s consent. It would be an odd, self-harming kind of Defaulting Party that would run ''that'' argument unless the market was properly gyrating.</ref> | ||
One must now ascertain termination values for the {{{{{1}}}|Terminated Transaction}}s as of the {{isdaprov|Early Termination Date}} per the methodology set out in Section {{{{{1}}}|6(e)(i)}}. | One must now ascertain termination values for the {{{{{1}}}|Terminated Transaction}}s as of the {{isdaprov|Early Termination Date}} per the methodology set out in Section {{{{{1}}}|6(e)(i)}}. | ||
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==={{{{{1}}}|Early Termination Amount}}=== | ==={{{{{1}}}|Early Termination Amount}}=== | ||
Your inhouse metaphysicians having calculated your {{isdaprov|Close-out Amount}}s,<ref name="close out amounts"/> you must assemble all the values into an | Your inhouse metaphysicians having calculated your {{isdaprov|Close-out Amount}}s,<ref name="close out amounts"/> you must assemble all the values into an Early Termination Amount.<ref>Or, in the {{1992ma}}’s estimable prose, “the amount, if any, payable in respect of an {{isdaprov|Early Termination Date}} and determined pursuant to this Section”.</ref> | ||