Template:ISDA Master Agreement 2002 9(h)(i): Difference between revisions

{{isdaprov|9(h)(i)}}  '''{{isdaprov|Prior to Early Termination}}'''. Prior to the occurrence or effective designation of an Early <br>Termination Date in respect of the relevant {{isdaprov|Transaction}}:― <br>

:(1) '''Interest on Defaulted Payments'''. If a party defaults in the performance of any payment <br>obligation, it will, to the extent permitted by applicable law and subject to Section {{isdaprov|6(c)}}, pay interest <br>(before as well as after judgment) on the overdue amount to the other party on demand in the same <br>currency as the overdue amount, for the period from (and including) the original due date <br>for payment to (but excluding) the date of actual payment (and excluding any period in respect of <br>which interest or compensation in respect of the overdue amount is due pursuant to clause (3)(B) or <br>(C) below), at the Default Rate. <br>

:(2) '''Compensation for Defaulted Deliveries'''. If a party defaults in the performance of any <br>obligation required to be settled by delivery, it will on demand (A) compensate the other party to <br>the extent provided for in the relevant {{isdaprov|Confirmation}} or elsewhere in this {{isdaprov|Agreement}} and (B) unless <br>otherwise provided in the relevant {{isdaprov|Confirmation}} or elsewhere in this {{isdaprov|Agreement}}, to the extent <br>permitted by applicable law and subject to Section {{isdaprov|6(c)}}, pay to the other party interest (before as <br>well as after judgment) on an amount equal to the fair market value of that which was required to be <br>delivered in the same currency as that amount, for the period from (and including) the originally <br>scheduled date for delivery to (but excluding) the date of actual delivery (and excluding any period <br>in respect of which interest or compensation in respect of that amount is due pursuant to clause (4) <br>below), at the {{isdaprov|Default Rate}}. The fair market value of any obligation referred to above will be <br>determined as of the originally scheduled date for delivery, in good faith and using commercially <br>reasonable procedures, by the party that was entitled to take delivery. <br>

::(A) a party does not pay any amount that, but for Section {{isdaprov|2(a)(iii)}}, would have been <br>payable, it will, to the extent permitted by applicable law and subject to Section 6(c) and <br>clauses (B) and (C) below, pay interest (before as well as after judgment) on that amount <br>to the other party on demand (after such amount becomes payable) in the same currency as <br>that amount, for the period from (and including) the date the amount would, but for <br>Section {{isdaprov|2(a)(iii)}}, have been payable to (but excluding) the date the amount actually <br>becomes payable, at the Applicable Deferral Rate; <br>

::(B) a payment is deferred pursuant to Section {{isdaprov|5(d)}}, the party which would otherwise <br>have been required to make that payment will, to the extent permitted by applicable law, <br>subject to Section {{isdaprov|6(c)}} and for so long as no {{isdaprov|Event of Default}} or {{isdaprov|Potential Event of Default}} <br>with respect to that party has occurred and is continuing, pay interest (before as well as <br>after judgment) on the amount of the deferred payment to the other party on demand (after <br>such amount becomes payable) in the same currency as the deferred payment, for the <br>period from (and including) the date the amount would, but for Section {{isdaprov|5(d)}}, have been <br>payable to (but excluding) the earlier of the date the payment is no longer deferred <br>pursuant to Section {{isdaprov|5(d)}} and the date during the deferral period upon which an Event of <br>Default or {{isdaprov|Potential Event of Default}} with respect to that party occurs, at the Applicable <br>Deferral Rate; or <br>

::(C) a party fails to make any payment due to the occurrence of an {{isdaprov|Illegality}} or a Force <br>Majeure Event (after giving effect to any deferral period contemplated by clause (B) <br>above), it will, to the extent permitted by applicable law, subject to Section {{isdaprov|6(c)}} and for so <br>long as the event or circumstance giving rise to that {{isdaprov|Illegality}} or {{isdaprov|Force Majeure Event}} <br>continues and no {{isdaprov|Event of Default}} or {{isdaprov|Potential Event of Default}} with respect to that party <br>has occurred and is continuing, pay interest (before as well as after judgment) on the <br>overdue amount to the other party on demand in the same currency as the overdue amount, <br>for the period from (and including) the date the party fails to make the payment due to the <br>occurrence of the relevant {{isdaprov|Illegality}} or {{isdaprov|Force Majeure Event}} (or, if later, the date the <br>payment is no longer deferred pursuant to Section 5(d)) to (but excluding) the earlier of the <br>date the event or circumstance giving rise to that {{isdaprov|Illegality}} or {{isdaprov|Force Majeure Event}} ceases <br>to exist and the date during the period upon which an {{isdaprov|Event of Default}} or Potential Event <br>of Default with respect to that party occurs (and excluding any period in respect of which <br>interest or compensation in respect of the overdue amount is due pursuant to clause (B) <br>above), at the {{isdaprov|Applicable Deferral Rate}}. <br>  

:(4) Compensation for Deferred Deliveries. If:― <br>

::(A) a party does not perform any obligation that, but for Section {{isdaprov|2(a)(iii)}}, would have <br>been required to be settled by delivery; <br>

::(C) a party fails to make a delivery due to the occurrence of an {{isdaprov|Illegality}} or a Force <br>Majeure Event at a time when any applicable {{isdaprov|Waiting Period}} has expired, <br>

:the party required (or that would otherwise have been required) to make the delivery will, to the <br>extent permitted by applicable law and subject to Section {{isdaprov|6(c)}}, compensate and pay interest to the <br>other party on demand (after, in the case of clauses (A) and (B) above, such delivery is required) if <br>and to the extent provided for in the relevant {{isdaprov|Confirmation}} or elsewhere in this {{isdaprov|Agreement}}.