Template:ISDA Master Agreement 2002 6(e)(ii): Difference between revisions

{{isdaprov|6(e)(ii)}} '''Termination Events'''. If the {{isdaprov|Early Termination Date}} results from a {{isdaprov|Termination Event}}:―   

:(1) '''One {{isdaprov|Affected Party}}'''. Subject to clause (3) below, if there is one {{isdaprov|Affected Party}}, the Early Termination Amount will be determined in accordance with Section {{isdaprov|6(e)(i)}}, except that references to the {{isdaprov|Defaulting Party}} and to the {{isdaprov|Non-defaulting Party}} will be deemed to be references to the {{isdaprov|Affected Party}} and to the {{isdaprov|Non-affected Party}}, respectively.  

:(2) '''Two {{isdaprov|Affected Parties}}'''. Subject to clause (3) below, if there are two {{isdaprov|Affected Parties}}, each party will determine an amount equal to the {{isdaprov|Termination Currency Equivalent}} of the sum of the {{isdaprov|Close-out Amount}} or {{isdaprov|Close-out Amounts}} (whether positive or negative) for each Terminated Transaction or group of {{isdaprov|Terminated Transactions}}, as the case may be, and the Early Termination Amount will be an amount equal to (A) the sum of (I) one-half of the difference between the higher amount so determined (by party “'''X'''”) and the lower amount so determined (by party “'''Y'''”) and (II) the {{isdaprov|Termination Currency Equivalent}} of the {{isdaprov|Unpaid Amounts}} owing to X less (B) the {{isdaprov|Termination Currency Equivalent}} of the {{isdaprov|Unpaid Amounts}} owing to Y. If the Early Termination Amount is a positive number, Y will pay it to X; if it is a negative number, X will pay the absolute value of the {{isdaprov|Early Termination Amount}} to Y.  

:(3) '''Mid-Market Events'''. If that {{isdaprov|Termination Event}} is an {{isdaprov|Illegality}} or a {{isdaprov|Force Majeure Event}}, then the {{isdaprov|Early Termination Amount}} will be determined in accordance with clause (1) or (2) above, as appropriate, except that, for the purpose of determining a {{isdaprov|Close-out Amount}} or Close-out Amounts, the {{isdaprov|Determining Party}} will:―  

::(A) if obtaining quotations from one or more third parties (or from any of the {{isdaprov|Determining Party}}’s Affiliates), ask each third party or {{isdaprov|Affiliate}} (I) not to take account of the current creditworthiness of the {{isdaprov|Determining Party}} or any existing Credit Support Document and (II) to provide mid-market quotations; and  

::(B) in any other case, use mid-market values without regard to the creditworthiness of the {{isdaprov|Determining Party}}. <br>