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Amwelladmin (talk | contribs) (Created page with "These are the ''other'' termination events your Credit department has dreamt up for this specific counterparty, that didn’t occur to the framers of the {{...") |
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{{{{{1}}}|Additional Termination Event}}s are the ''other'' termination events your [[Credit officer|Credit department]] has dreamt up for this specific counterparty, that didn’t occur to the framers of the {{isdama}} — or, at any rate, weren’t sufficiently universal to warrant being included in the {{isdama}} for all. While the standard {{{{{1}}}|Termination Events}} tend to be “non-fault” events which justify termination of the relationship on economic grounds, but not on terms necessarily punitive to the {{{{{1}}}|Affected Party}}, Additional Termination Events are more “credity”, more susceptible of moral outrage, and as such more closely resemble {{{{{1}}}|Events of Default}} than {{{{{1}}}|Termination Events}}. | |||
Common ones include: | Common ones include: | ||
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*Parent divestment (where counterparty is a financing subsidiary) | *Parent divestment (where counterparty is a financing subsidiary) | ||
There is a — well, ''contrarian'' — school of thought that {{{{{1}}}|Additional Termination Event}}s better serve the interests of the [[Negotiator|Ancient Guild of Contract Negotiators]] and the [[Credit officer|Worshipful Company of Credit Officers]] than they do the shareholders of the institutions for whom these artisans practise their craft, for in these days of [[Threshold - CSA Provision|zero-threshold]] [[CSA|CSAs]], the ''real'' credit protections in the {{isdama}} are the standard {{{{{1}}}|Events of Default}} (especially {{{{{1}}}|Failure to Pay or Deliver}} and {{{{{1}}}|Bankruptcy}}). | |||
There is a school of thought that Additional Termination | |||
It’s a fair bet no-one in the organisation will have kept a record of how often you pulled [[NAV trigger]]. It may well be ''never''. | It’s a fair bet no-one in the organisation will have kept a record of how often you pulled [[NAV trigger]]. It may well be ''never''. |