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Template:Failure to pay procedure: Difference between revisions
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, 17 September 2021→7. Pay your {{{{{1}}}|Early Termination Amount}}
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====7. Pay your {{{{{1}}}|Early Termination Amount}}==== | ====7. Pay your {{{{{1}}}|Early Termination Amount}}==== | ||
Your in-house metaphysicians having calculated your {{isdaprov|Close-out Amount}}s,<ref name="close out amounts"/> and assembled all the values into an {{{{{1}}}|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> the party who owes it must pay the {{{{{1}}}|Early Termination Amount}}. With {{icds}} yen for infinite fiddlarity, this will depend on whether the Early Termination Date follows an Event of Default or an Termination Event. If the former, the {{{{{1}}}|Early Termination Amount}} is payable at once, as soon as the {{{{{1}}}|6(d)}} statement is deemed delivered; if a {{{{{1}}}|Termination Event}}, only two Local Business | Your in-house metaphysicians having calculated your {{isdaprov|Close-out Amount}}s,<ref name="close out amounts"/> and assembled all the values into an {{{{{1}}}|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> the party who owes it must pay the {{{{{1}}}|Early Termination Amount}}. With {{icds}} yen for infinite fiddlarity, this will depend on whether the Early Termination Date follows an Event of Default or an Termination Event. If the former, the {{{{{1}}}|Early Termination Amount}} is payable at once, as soon as the {{{{{1}}}|6(d)}} statement is deemed delivered; if a {{{{{1}}}|Termination Event}}, only two {{{{{1}}}|Local Business Day}}s {{ikr}} after the {{{{{1}}}|6(d)}} statement is delivered (or, where there are ''two'' {{{{{1}}}|Affected Parties}} and both are delivering each other {{{{{1}}}|6(d)}} statements {{ikr}} after both have done so). | ||
====8. Putting that all together==== | |||
Here are all the stages you must go through between becoming entitled to terminate and settlement for a {{{{{1}}}|Failure to Pay or Deliver}}: | |||
*T: There must be a {{{{{1}}}|Failure to Pay or Deliver}} on a day, T. | |||
*T+1: After close of business on T, the {{{{{1}}}|Non-defaulting Party}} must give the {{{{{1}}}|Defaulting Party}} a Section {{{{{1}}}|5(a)(i)}} notice of failure to pay of deliver. The prescribed [[grace period]] must expire. The grace periods may be between 1 and 3 {{{{{1}}}|LBD}}s. There may also be carve-outs for operational failures and so on, to add to the fun. | |||
*T+4: You must send a Section {{{{{1}}}|6(a)}} notice designating an {{{{{1}}}|Early Termination Date}} for all outstanding {{{{{1}}}|Transaction}}s. Let’s say it is 3 {{{{{1}}}|LBS}}s. You must designate an Early Termination Date within [[By not more than 20 days’ notice|20 days]]. Let’s say it is 20 days, for the hell of it | |||
*T+24: You are “off risk” and must start calculating your {{{{{1}}}|Close-out Amount}}s for all outstanding {{{{{1}}}|Transaction}}s. You must do this ass soon as reasonably practicable. Let’s say that takes another 30 days. | |||
*T+54: having calculated all {{{{{1}}}|Close-out Amount}}s and totted them all up into a single {{{{{1}}}|Early Termination Amount}}: You send your Section 6(d) statement advising of that amount, giving bank details and supplying your workings. | |||
*T+54: Your {{{{{1}}}|Early Termination Amount}} is due. | |||