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Template:Isda 8 general: Difference between revisions
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Amwelladmin (talk | contribs) (Created page with "=== Section {{{{{1}}}|8(a)}} === One could have stopped after the first sentence, but it is a rare ISDA ninja that can help himself babbling. ISDA ninjas would make te...") |
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They are, in the strict literal sense of an indemnity: a contractual promise to pay a sum of money (the difference between the amount paid in the {{{{{1}}}|Non-Contractual Currency}} and the actual amount owed in the {{{{{1}}}|Contractual Currency}}) in circumstances not (strictly) amounting to a breach; they are not in the popular (but misconceived) conception of an {{tag|indemnity}} as some kind of all-conquering [[smart bomb]]. | They are, in the strict literal sense of an indemnity: a contractual promise to pay a sum of money (the difference between the amount paid in the {{{{{1}}}|Non-Contractual Currency}} and the actual amount owed in the {{{{{1}}}|Contractual Currency}}) in circumstances not (strictly) amounting to a breach; they are not in the popular (but misconceived) conception of an {{tag|indemnity}} as some kind of all-conquering [[smart bomb]]. | ||
[[Indemnity]] is one of the [[JC]]’s pet subjects. Get him started and that’s the evening gone. | Now, we must hush, if we want to get home at a reasonable hour, because the [[Indemnity]] is one of the [[JC]]’s pet subjects. Get him started and that’s the evening gone. | ||
=== Section {{{{{1}}}|8(d)}} === | === Section {{{{{1}}}|8(d)}} === | ||
So if your clottish counterparty can’t follow simple instructions and sends you ''Lire'' rather than ''Pesetas'', and thereby fails to cover your loss, as long as you can prove what the exchange rate was at the time you would have exchanged it into the {{{{{1}}}|Contractual Currency}}, you can recover a loss, ''even if you didn’t''. | So if your clottish counterparty can’t follow simple instructions and sends you ''Lire'' rather than ''Pesetas'', and thereby fails to cover your loss, as long as you can prove what the exchange rate was at the time you would have exchanged it into the {{{{{1}}}|Contractual Currency}}, you can recover a loss, ''even if you didn’t''. | ||
Now this, to me, seems a little controversial. What if the exchange rate dropped through the floor, then recovered, and the {{{{{1}}}|Non-Affected Party}} held his nerve. Can he then [[cherry-pick]]? | Now this, to me, seems a little controversial. What if the exchange rate dropped through the floor, then recovered, and the {{{{{1}}}|Non-Affected Party}} held his nerve. Can he then [[cherry-pick]]? | ||