Template:M summ 1992 ISDA Unpaid Amounts
You may want to know where Unpaid Amounts feature in the ISDA Master Agreement. The answer: In Payments on Early Termination: Section 6(e)(i) (for Events of Default) and 6(e)(ii) (for Termination Events) and 6(e)(iv) (Adjustment for Illegality or Force Majeure Event).
Spoddy point for old-fashioned 1992 ISDA hipster types: if “Loss” is your chosen means of close-out valuation, the concept of Unpaid Amounts is more or less factored into the definition of Loss:
- Loss includes losses and costs (or gains) in respect of any payment or delivery required to have been made (assuming satisfaction of each applicable condition precedent) on or before the relevant Early Termination Date and not made, except, so as to avoid duplication, if Section 6(e)(i)(1) or (3) or 6(e)(ii)(2)(A) applies...[1]
This is why the drafting of the Default provision (paragraph 6) of the 1995 CSA is as tortuous as it is. If you were wondering.
- ↑ There is a magnificent piece of ISDA discombobulation here: Section 6(e)(i)(1) and (3), and 6(e)(ii)(2)(A), all deal exclusively with agreements where Market Quotation, and not Loss, applies. So there is, in fact, no risk of duplication, since the definition of Loss is entirely irrelevant to these parts of the agreement.