Template:Isda 6(e)(iv) summ

If you have a legitimate excuse for failing to pay — that it was due to aqueous invasion, rust, operation of trade winds, or the mendacity of His Majesty’s Royal Enemies etc and therefore a Force Majeure Event, or payment would have been Illegal, then it isn’t an {{{{{1}}}|Event of Default}}, none of this closing out of {{{{{1}}}|Terminated Transaction}}s applies — yet — but you are still left with this odd situation where you have what looks like, but otherwise technically wouldn’t be, an {{{{{1}}}|Unpaid Amount}}, and also nothing to do with it.

Well, ISDA’s crack drafting squad™ abhors a vacuum.

Section {{{{{1}}}|6(e)(iv)}} fills it. Firstly, it says such a non-paid amount is an Unpaid Amount, even though you weren’t required to pay it, and secondly, it allows you therefore to save it up, for any subsequent {{{{{1}}}|Early Termination Date}} that might arise (should the operating {{{{{1}}}|Illegality}} or Force Majeure Event not lift), and it allows you to also accrue interest on the {{{{{1}}}|Unpaid Amount}} due in the mean time, so you don’t get stung for your carry cost should the circumstances resolve before it becomes an {{{{{1}}}|Early Termination Date}}.