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Template:Isda 2(a)(iii) summ: Difference between revisions
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A word-scape stain’d with tightly kernèd face<Br> | A word-scape stain’d with tightly kernèd face<Br> | ||
And girded round with fontish weaponry.<Br> | And girded round with fontish weaponry.<Br> | ||
{{Script|Herculio}} (''inspecting the document''): Verily, convenantry this dark<Br> | |||
Speaks of litiginous untrust.<Br> | Speaks of litiginous untrust.<Br> | ||
:—{{Otto}}, {{dsh}} | :—{{Otto}}, {{dsh}} | ||
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There is an argument the flawed asset clause wasn’t a good idea even then, but a better one that it is a bad idea now, but like so many parts of this sacred, blessed form it is there and, for hundreds and thousands of ISDA trading arrangements, we are stuck with it. | There is an argument the flawed asset clause wasn’t a good idea even then, but a better one that it is a bad idea now, but like so many parts of this sacred, blessed form it is there and, for hundreds and thousands of ISDA trading arrangements, we are stuck with it. | ||
Ask a | Ask a chary credit officer what she thinks of Section {{{{{1}}}|2(a)(iii)}} and her eyes are sure to glister as she regales you with the countless times it's got her out of a scrape at the first sign of {{{{{1}}}|Potential Event of Default}}. Regulators are less enamoured, especially after the [[ global financial crisis]], and took some steps to impose at least as “use it or lose it” drop-dead point, but institutional inertia and the brick wall of reality has long since arrested that drift. | ||
====Does not apply to {{{{{1}}}|Termination Events}}==== | ====Does not apply to {{{{{1}}}|Termination Events}}==== | ||