Template:Isda Specified Entity summ: Difference between revisions

Template:Isda Specified Entity summ (view source)

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 It is relevant to the definition of {{{{{1}}}|Cross Default}} and {{{{{1}}}|Default under Specified Transaction}} in that it widens the effect of those provisions to include defaults by the parties specified.
-===Nominating {{{{{1}}}|Specified Entities}} for yourself under {{isdaprov|DUST}} has its upsides===
-For the most part, allowing any of your friends or relations to be named as your {{{{{1}}}|Specified Entity}} widens the range of vicissitudes of which you may fall foul, and therefore [[inure]]s solely for the benefit of your counterparty. In otherwords, if you can get away with it, don’t agree to name any of your affiliates as {{isdaprov|Specified Entities}}.
-There is one exception, and that is Section {{isdaprov|5(a)(v)}} {{isdaprov|Default Under Specified Transaction}}).
-of those provisions also to include defaults ''by'' the other side (and its {{{{{1}}}|Specified Entities}}) under their contracts with ''your'' {{{{{1}}}|Specified Entities}} — so there ''is'' some benefit to naming ''your'' [[affiliates]], friends and relations as {{{{{1}}}|Specified Entities}}. But given how unlikely you are to be actually monitoring how a counterparty performs with an affiliate, it’s more of a false comfort than a real one.