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Template:Isda Preamble summ: Difference between revisions
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{{drop|A| preamble is}} he [[legal eagle]]’s opportunity to set a scene, a juridical version of “[[once upon a time]]”: an integrated passage that may or may not start with “[[whereas]]”, “[[background]]” or something like that and is meant to prime you for the meat of [[contract]]. | {{drop|A| preamble is}} he [[legal eagle]]’s opportunity to set a scene, a juridical version of “[[once upon a time]]”: an integrated passage that may or may not start with “[[whereas]]”, “[[background]]” or something like that and is meant to prime you for the meat of [[contract]]. | ||
The {{isdama}} needs just such a scene-setter: everyone, once, stares at that gnomic title and thinks, “okay, what on earth is ''this''<nowiki> all about?” That is the {{ | The {{isdama}} needs just such a scene-setter: everyone, once, stares at that gnomic title and thinks, “okay, what on earth is ''this''<nowiki> all about?” That is the {{{{{1}}}<nowiki>|Preamble}}. There is not much to see but, casually, it calls the reader’s attention to things that will later become important — the proverbial rifle hanging above the fireplace that goes off in the third act. That is where the similarities with Chekhov end, though: before long, it will go full Dostoyevsky on us. | ||
The {{isdama}} is the basic framework that applies to anyone who touches down on planet [[ISDA]]. The preamble tells us about its tri-partite form: the '''Pre-printed Master''', a '''<nowiki>{{ | The {{isdama}} is the basic framework that applies to anyone who touches down on planet [[ISDA]]. The preamble tells us about its tri-partite form: the '''Pre-printed Master''', a '''<nowiki>{{{{{1}}}<nowiki>|Schedule}}''' of elections and amendments, and '''<nowiki>{{{{{1}}}<nowiki>|Confirmation}}s''' setting out the terms of '''<nowiki>{{{{{1}}}<nowiki>|Transaction}}s'''. | ||
====ISDAs, Ancient and Modern==== | ====ISDAs, Ancient and Modern==== | ||
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The still, after all these years, state-of-the-art {{2002ma}}. This is the most popular version — it took industry participants an ''awfully'' long time to get comfortable with it, despite its innovations being largely sensible but, twenty-two years into its life, most of the European and Asian markets trade on the {{2002ma}}, and we sense even those camelesque Americans are coming to begrudging terms with it. If you are ever not sure, on this wiki, the JC will generally have the {{2002ma}} in mind, though there is a fully scoped user manual and comparative discussions relating to the {{1992ma}} as well. Speaking of which — | The still, after all these years, state-of-the-art {{2002ma}}. This is the most popular version — it took industry participants an ''awfully'' long time to get comfortable with it, despite its innovations being largely sensible but, twenty-two years into its life, most of the European and Asian markets trade on the {{2002ma}}, and we sense even those camelesque Americans are coming to begrudging terms with it. If you are ever not sure, on this wiki, the JC will generally have the {{2002ma}} in mind, though there is a fully scoped user manual and comparative discussions relating to the {{1992ma}} as well. Speaking of which — | ||
====={{1992ma}}===== | ====={{1992ma}}===== | ||
The {{1992ma}}<nowiki> was the first global, pan-transactional, earth-shaking version of the ISDA Master Agreement. It was the first one to be actually called a “Master Agreement”. It is still popular with traditionalists, those who can’t abide a one-day grace period for {{ | The {{1992ma}}<nowiki> was the first global, pan-transactional, earth-shaking version of the ISDA Master Agreement. It was the first one to be actually called a “Master Agreement”. It is still popular with traditionalists, those who can’t abide a one-day grace period for {{{{{1}}}<nowiki>|Failure to Pay or Deliver}}, and Americans. | ||
Until quite recently much of the American market was still on the {{1992ma}}, although most users heavily modified it to take in most of the innovations of the {{2002ma}}. But the anecdotal sense we have is that even in New York, these days, the {{2002ma}} is the master agreement of choice for the discerning ninja. | Until quite recently much of the American market was still on the {{1992ma}}, although most users heavily modified it to take in most of the innovations of the {{2002ma}}. But the anecdotal sense we have is that even in New York, these days, the {{2002ma}} is the master agreement of choice for the discerning ninja. | ||
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====Schedule==== | ====Schedule==== | ||
All usable versions of the {{isdama}}<nowiki> have a {{ | All usable versions of the {{isdama}}<nowiki> have a {{{{{1}}}<nowiki>|Schedule}} with a semi-rigid structure: | ||
<nowiki>{{ | <nowiki>{{{{{1}}}<nowiki>|Part 1}}: '''<nowiki>{{{{{1}}}<nowiki>|Termination Provisions}}''' <br> | ||
<nowiki>{{ | <nowiki>{{{{{1}}}<nowiki>|Part 2}}: '''<nowiki>{{{{{1}}}<nowiki>|Tax Representations}}''' <br> | ||
<nowiki>{{ | <nowiki>{{{{{1}}}<nowiki>|Part 3}}: '''<nowiki>{{{{{1}}}<nowiki>|Documents for Delivery}}''' <br> | ||
<nowiki>{{ | <nowiki>{{{{{1}}}<nowiki>|Part 4}}: '''<nowiki>{{{{{1}}}<nowiki>|Miscellaneous (Schedule)}}''' <br> | ||
<nowiki>{{ | <nowiki>{{{{{1}}}<nowiki>|Part 5}}: '''<nowiki>{{{{{1}}}<nowiki>|Other Provisions}}''' <br> | ||
The first four parts of the Schedule fine-tune various Events of Default and Termination Events, letting the parties make certain elections and representations, setting out their tax and financial disclosures and specifying names, addresses, contact details, agents, friends and relations and so on. | The first four parts of the Schedule fine-tune various Events of Default and Termination Events, letting the parties make certain elections and representations, setting out their tax and financial disclosures and specifying names, addresses, contact details, agents, friends and relations and so on. | ||