Template:M summ 2002 ISDA Automatic Early Termination: Difference between revisions

Template:M summ 2002 ISDA Automatic Early Termination (view source)

831 bytes removed , 1 January

Replaced content with "{{isda Automatic Early Termination summ|isdaprov}}"

82,903

edits

@@ Line 1: / Line 1: @@
-{{isdaprov|Automatic Early Termination}} is an odd and misunderstood concept which exists in Section {{isdaprov|6(a)}} {{isdaprov|Right to Terminate Following Event of Default}} of the {{isdama}}. As is so much in the {{isdama}}, it’s all about '''[[Netting]]'''. Where a jurisdiction suspends terms of contracts in a period of formal insolvency, the idea is to have the ISDA break before that suspension kicks in — so close-out netting works.
+{{isda Automatic Early Termination summ|isdaprov}}
-{{isdaprov|AET}} is thus only triggered by ''certain'' events under the {{isdaprov|Bankruptcy}} [[Events of Default - ISDA Provision|event of default]] — formal bankruptcy procedures — and not by economic events that tend to indicate insolvency (such as an inability to pay debts as they fall due,  [[technical insolvency]] or the exercise of security. Nor does it apply to other Events of Default.
-{{automaticearlytermination}}