Template:Failure to pay procedure: Difference between revisions

Template:Failure to pay procedure (view source)

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 So: once you have a clear, notified {{{{{1}}}|Failure to Pay or Deliver}}, you have to wait ''at least'' one and possibly three or more {{{{{1}}}|Local Business Day}}s before doing anything about it. Therefore, you are on tenterhooks until the [[close of business]] '''T+2''' {{{{{1}}}|LBD}}s (standard {{2002ma}}), or '''T+4''' {{isda92prov|LBD}}s (standard {{1992ma}}).
-''Trick for the young players'': check that the conditions precedent to payment under Section {{{{{1}}}|2}} remain fulfilled. For example, has the defaulting party got any grounds to suspend payment under Section {{{{{1}}}|2(a)(iii)}}? It might, for example, if the putatively non-defaulting party has slipped into {{{{{1}}}|Bankruptcy}} or {{{{{1}}}|Cross Default}} in the meantime. Note a party does not have to invoke Section 2(a)(iii). It just applies. This is a bit of a banana-skin, as we discuss at length in our {{{{{1}}}|2(a)(iii)}} article.
+''Trick for the young players'': check that the conditions precedent to payment under Section {{{{{1}}}|2}} remain fulfilled. For example, has the defaulting party got any grounds to suspend payment under Section {{{{{1}}}|2(a)(iii)}}? Thanks to the loose way section {{{{{1}}}|2(a)(iii)}} is drafted, it might, for example, if the putatively non-defaulting party has slipped into {{{{{1}}}|Bankruptcy}} or {{{{{1}}}|Cross Default}} in the meantime — though we think a more sensible reading is that {{{{{1}}}|2(a)(iii)}} can only be measured as at the originally scheduled payment date. Note: a party does not have to ''invoke'' Section {{{{{1}}}|2(a)(iii)}}, or send a notice about it. It just applies. This is a bit of a banana-skin, as we discuss at length in our {{{{{1}}}|2(a)(iii)}} article.
 Let us imagine for a moment you are not yourself in default and have indeed waited the necessary time.