Template:ISDA English Law Credit Support Annex 2016 9(e): Difference between revisions

Unless otherwise specified in Paragraph {{csaprov|11}}, upon delivery of a {{csaprov|Legal Ineligibility Notice}} by a party, each item of {{csaprov|Eligible Credit Support (VM)}} (or a specified amount of such item) identified in such notice (i) will cease to be {{csaprov|Eligible Credit Support (VM)}} for purposes of transfers to such party as the {{csaprov|Transferee}} hereunder as of the applicable {{csaprov|Transfer Ineligibility Date}}, (ii) will cease to be {{csaprov|Eligible Credit Support (VM)}} for the other party as the {{csaprov|Transferor}} for all purposes hereunder (other than for the purposes of the definitions of {{csaprov|Credit Support Balance (VM)}} and {{csaprov|Equivalent Credit Support (VM)}}) as of the {{csaprov|Total Ineligibility Date}} and (iii) will have a Value of zero on and from the {{csaprov|Total Ineligibility Date}}, other than for the purposes of Paragraph {{csaprov|6}}. <br>

“'''{{csaprov|Legal Ineligibility Notice}}'''” means a written notice from the {{csaprov|Transferee}} to the {{csaprov|Transferor}} in which the {{csaprov|Transferee}} (i) represents that the {{csaprov|Transferee}} has determined that one or more items of {{csaprov|Eligible Credit Support (VM)}} (or a specified amount of any such item) either has ceased to satisfy, or as of a specified date will cease to satisfy, collateral eligibility requirements under law applicable to the {{csaprov|Transferee}} requiring the collection of variation margin (the “'''{{csaprov|Legal Eligibility Requirements}}'''”), (ii) lists the item(s) of {{csaprov|Eligible Credit Support (VM)}} (and, if [[applicable]], the specified amount of such item) that have ceased to satisfy, or as of a specified date will cease to satisfy, the {{csaprov|Legal Eligibility Requirements}}, (iii) describes the reason(s) why such item(s) of {{csaprov|Eligible Credit Support (VM)}} (or the specified amount thereof) have ceased to satisfy, or will cease to satisfy, the {{csaprov|Legal Eligibility Requirements}} and (iv) specifies the {{csaprov|Total Ineligibility Date}} and, if different, the {{csaprov|Transfer Ineligibility Date}}.  <br>

“'''{{csaprov|Total Ineligibility Date}}'''” means the date on which the relevant item of {{csaprov|Eligible Credit Support (VM)}} (or a specified amount of such item) has ceased to satisfy, or will cease to satisfy, the {{csaprov|Legal Eligibility Requirements}} applicable to the {{csaprov|Transferee}} for all purposes hereunder, provided that, unless otherwise specified in Paragraph {{csaprov|11}}, if such date is earlier than the fifth {{csaprov|Local Business Day}} following the date on which the {{csaprov|Legal Ineligibility Notice}} is delivered, the {{csaprov|Total Ineligibility Date}} will be the fifth {{csaprov|Local Business Day}} following the date of such delivery.  <br>

“'''{{csaprov|Transfer Ineligibility Date}}'''” means the date on which the relevant item of {{csaprov|Eligible Credit Support (VM)}} (or a specified amount of such item) has ceased to satisfy, or will cease to satisfy, the {{csaprov|Legal Eligibility Requirements}} for purposes of transfers to the {{csaprov|Transferee}} hereunder, provided that, unless otherwise specified in Paragraph {{csaprov|11}}, if such date is earlier than the fifth {{csaprov|Local Business Day}} following the date on which the {{csaprov|Legal Ineligibility Notice}} is delivered, the {{csaprov|Transfer Ineligibility Date}} will be the fifth {{csaprov|Local Business Day}} following the date of such delivery. <br>