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Template:Isda 6(e)(ii) summ: Difference between revisions
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Amwelladmin (talk | contribs) (Created page with "Where the close-out follows a {{isdaprov|Termination Event}}, we are generally in “well, it’s just one of those things; terribly sorry it had to end like this” territory...") |
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So first, who is the {{isdaprov|Affected Party}}, to whom the event has happened? If there is only one then the {{isdaprov|Affected Transaction}} termination process that upon an {{isdaprov|Event of Default}} and the {{isdaprov|Non-Affected Party}} will have the option whether or not to call the event at all, and will generally be in the driving seat if it does. If, however, the {{isdaprov|Termination Event}} in question is an {{isdaprov|Illegality}} or {{isdaprov|Force Majeure Event}}, there’s a further softening and the {{isdaprov|Non-Affected Party}} must use a mid-market levels derived from quotations which disregard the value of the {{isdaprov|Non-Affected Party}}’s creditworthiness or credit support — again, the reason being, “look, this is just one of those things, man”. It isn’t about ''you''. | So first, who is the {{isdaprov|Affected Party}}, to whom the event has happened? If there is only one then the {{isdaprov|Affected Transaction}} termination process that upon an {{isdaprov|Event of Default}} and the {{isdaprov|Non-Affected Party}} will have the option whether or not to call the event at all, and will generally be in the driving seat if it does. If, however, the {{isdaprov|Termination Event}} in question is an {{isdaprov|Illegality}} or {{isdaprov|Force Majeure Event}}, there’s a further softening and the {{isdaprov|Non-Affected Party}} must use a mid-market levels derived from quotations which disregard the value of the {{isdaprov|Non-Affected Party}}’s creditworthiness or credit support — again, the reason being, “look, this is just one of those things, man”. It isn’t about ''you''. | ||
If ''both'' sides are {{isdaprov|Affected Parties}} (likely upon an {{isdaprov|Illegality}} or {{isdaprov|Tax Event}} and, to a lesser extent, a {{isdaprov|Tax Event | If ''both'' sides are {{isdaprov|Affected Parties}} (likely upon an {{isdaprov|Illegality}} or {{isdaprov|Tax Event}} and, to a lesser extent, a {{isdaprov|Tax Event Upon Merger}} each side works out its own {{isdaprov|Close-out Amount}}s and they split the difference. | ||