Template:M summ 2002 ISDA 6(b)
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There is a difference between:
- Non-catastrophic Termination Events: Termination Events that affect one, some, or just a subset of Transactions under the ISDA Master Agreement — these might be caused by, say, a Tax Event or a local Illegality, but in any weather they are not much about the solvency, creditworthiness or mendacity of your counterparty (and might have nothing to do with your counterparty at all); and
- Catastrophic Termination Events: those Termination Events which by their nature affect — that is, “Affect” — all Transactions. These generally are the bespoke ones your credit department insisted on, they will have something to do with the naughtiness of lack of fibre of one or other of the counterparty, and these function for most respects a lot more like Events of Default.
Thus, in the drafting of ISDA Schedules, CSAs and so on, you will often find laboured reference to Events of Default and/or Termination Events which lead to Early Termination Dates with respect to all outstanding Transactions as some kind of special, hyper-exciting, class of Termination Event.