Template:ISDA English Law Credit Support Annex 1995 6: Difference between revisions
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Paragraph .{{csaprov|6}}. '''{{csaprov|Default}}'''.<br> | |||
If an {{isdaprov|Early Termination Date}} is designated or {{f|deemed}} to occur as a result of an {{isdaprov|Event of Default}} in relation to a party, an amount equal to the {{csaprov|Value}} of the {{csaprov|Credit Support Balance}}, determined as though the {{isdaprov|Early Termination Date}} were a {{csaprov|Valuation Date}}, will be {{f|deemed}} to be an {{isdaprov|Unpaid Amount}} due to the {{csaprov|Transferor}} (which {{f|may or may not be}} the {{isdaprov|Defaulting Party}}) for purposes of Section {{isdaprov|6(e)}}. {{f|For the avoidance of doubt}}, if {{isdaprov|Market Quotation}} is the applicable payment measure for purposes of Section {{isdaprov|6(e)}}, then the {{isdaprov|Market Quotation}} determined under Section {{isdaprov|6(e)}} in relation to the {{isdaprov|Transaction}} constituted by this {{csaprov|Annex}} will be {{f|deemed}} to be zero, and, if {{isdaprov|Loss}} is the {{f|applicable}} payment measure for purposes of Section {{isdaprov|6(e)}}, then the {{isdaprov|Loss}} determined under Section {{isdaprov|6(e)}} in relation to the {{isdaprov|Transaction}} will be limited to the {{isdaprov|Unpaid Amount}} representing the {{csaprov|Value}} of the {{csaprov|Credit Support Balance}}. <br /> | If an {{isdaprov|Early Termination Date}} is designated or {{f|deemed}} to occur as a result of an {{isdaprov|Event of Default}} in relation to a party, an amount equal to the {{csaprov|Value}} of the {{csaprov|Credit Support Balance}}, determined as though the {{isdaprov|Early Termination Date}} were a {{csaprov|Valuation Date}}, will be {{f|deemed}} to be an {{isdaprov|Unpaid Amount}} due to the {{csaprov|Transferor}} (which {{f|may or may not be}} the {{isdaprov|Defaulting Party}}) for purposes of Section {{isdaprov|6(e)}}. {{f|For the avoidance of doubt}}, if {{isdaprov|Market Quotation}} is the applicable payment measure for purposes of Section {{isdaprov|6(e)}}, then the {{isdaprov|Market Quotation}} determined under Section {{isdaprov|6(e)}} in relation to the {{isdaprov|Transaction}} constituted by this {{csaprov|Annex}} will be {{f|deemed}} to be zero, and, if {{isdaprov|Loss}} is the {{f|applicable}} payment measure for purposes of Section {{isdaprov|6(e)}}, then the {{isdaprov|Loss}} determined under Section {{isdaprov|6(e)}} in relation to the {{isdaprov|Transaction}} will be limited to the {{isdaprov|Unpaid Amount}} representing the {{csaprov|Value}} of the {{csaprov|Credit Support Balance}}. <br /> | ||
Revision as of 04:16, 28 December 2019
Paragraph .6. Default.
If an Early Termination Date is designated or deemed to occur as a result of an Event of Default in relation to a party, an amount equal to the Value of the Credit Support Balance, determined as though the Early Termination Date were a Valuation Date, will be deemed to be an Unpaid Amount due to the Transferor (which may or may not be the Defaulting Party) for purposes of Section 6(e). For the avoidance of doubt, if Market Quotation is the applicable payment measure for purposes of Section 6(e), then the Market Quotation determined under Section 6(e) in relation to the Transaction constituted by this Annex will be deemed to be zero, and, if Loss is the applicable payment measure for purposes of Section 6(e), then the Loss determined under Section 6(e) in relation to the Transaction will be limited to the Unpaid Amount representing the Value of the Credit Support Balance.