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Template:M comp disc 2002 ISDA 5(a)(vi): Difference between revisions
Template:M comp disc 2002 ISDA 5(a)(vi) (view source)
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The {{2002ma}} updates the {{1992ma}}’s {{isda92prov|Cross Default}} so that if the combined amount outstanding under the two limbs of {{isdaprov|Cross Default}} exceed the {{isdaprov|Threshold Amount}}, then it will be an {{isdaprov|Event of Default}}. Normally, under the {{1992ma}}, {{isdaprov|Cross Default}} requires one ''or'' the other limbs to be satisfied — you can’t add them together. This was a bit of a snafu. The two limbs are: | The {{2002ma}} updates the {{1992ma}}’s {{isda92prov|Cross Default}} so that if the combined amount outstanding under the two limbs of {{isdaprov|Cross Default}} exceed the {{isdaprov|Threshold Amount}}, then it will be an {{isdaprov|Event of Default}}. Normally, under the {{1992ma}}, {{isdaprov|Cross Default}} requires one ''or'' the other limbs to be satisfied — you can’t add them together. This was a bit of a snafu. The two limbs are: | ||
*a default under a financial agreement that would allow a creditor to [[accelerate]] any [[indebtedness]] that party owes it; | *a default under a financial agreement that would allow a creditor to [[accelerate]] any [[indebtedness]] that party owes it; | ||
*a [[failure to pay]] on the due date under such agreements after the expiry of a [[grace period]]. | *a [[failure to pay]] on the due date under such agreements after the expiry of a [[grace period]]. | ||