Template:Nutshell 1995 CSA 4(a): Difference between revisions

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{{csaprov|4(a)}} '''{{csaprov|Disputed Calculations or Valuations}}'''. If a {{csaprov|Disputing Party}} reasonably disputes the value of a Delivery or Return Amount or the  the {{csaprov|Value}} of any {{csaprov|Eligible Credit Support}}:
{{csaprov|4(a)}} '''{{csaprov|Disputed Calculations or Valuations}}'''. If a {{csaprov|Disputing Party}} disputes any collateral call (the {{csaprov|Value}} of either the Exposure or the {{csaprov|Credit Support}} being transferred):
:(1) it must notify the other party and the {{csaprov|Valuation Agent}} by close of business on the {{csaprov|Local Business Day}} following receipt of the demand or transfer:
*it must give notice by close of business on the following {{csaprov|Local Business Day}}:
:(2) any undisputed amount must be transferred by close of business on the {{csaprov|Settlement Day}} following the demand date
*it must transfer any undisputed amount by close of business on the following {{csaprov|Settlement Day}};
:(3) the parties will try resolve the dispute; and
*the parties will try resolve the dispute. If by the {{csaprov|Resolution Time}} they haven’t:
:(4) if they haven’t done so by the {{csaprov|Resolution Time}}, then:
**'''Disputes as to {{csaprov|Exposure}}''': the {{csaprov|Valuation Agent}} will recalculate any disputed {{csaprov|Exposure}} as of the {{csaprov|Recalculation Date}} by averaging the mid-market quotations from those {{isdaprov|Reference Market-makers}} who will provide one (if none will, the {{csaprov|Valuation Agent}}’s original calculations will stand); and calculating the outstanding {{csaprov|Credit Support Balance}} as per Paragraph {{csaprov|11(e)(ii)}};
::(i) For Delivery and Return Amounts, the {{csaprov|Valuation Agent}} will recalculate the {{csaprov|Exposure}} and the {{csaprov|Value}} as of the {{csaprov|Recalculation Date}} by:
**'''Disputes as to {{csaprov|Credit Support}} {{csaprov|Value}}''': recalculating the {{csaprov|Value}} as of the date of transfer. <br />
:::(A) keeping any part of the calculations that aren't disputed;
The {{csaprov|Valuation Agent}} will notify each party by the {{csaprov|Notification Time}} on the {{csaprov|Local Business Day}} following the {{csaprov|Resolution Time}}. Then the appropriate transfer has to be made. <br>
:::(B) calculating the disputed portion of the {{csaprov|Exposure}} by seeking four (or if not available, fewer) mid-market quotations from {{csaprov|Reference Market-maker}}s and taking the average; provided that if no quotations are available the {{csaprov|Valuation Agent}}’s original calculations will stand; and
:::(C) using the procedures in Paragraph {{csaprov|11(e)(ii)}} to calculate the {{csaprov|Value}} of the outstanding {{csaprov|Credit Support Balance}};
::(ii) If the {{csaprov|Value}} of any {{csaprov|Equivalent Credit Support}} is disputed the {{csaprov|Valuation Agent}} will recalculate the {{csaprov|Value}} as of the date of transfer pursuant to Paragraph {{csaprov|11(e)(ii)}}. <br />
The {{csaprov|Valuation Agent}} will notify each party (or the other party, if the {{csaprov|Valuation Agent}} is a party) by the {{csaprov|Notification Time}} on the {{csaprov|Local Business Day}} following the {{csaprov|Resolution Time}}. Then the appropriate transfer has to be made.

Latest revision as of 10:14, 3 August 2018

4(a) Disputed Calculations or Valuations. If a Disputing Party disputes any collateral call (the Value of either the Exposure or the Credit Support being transferred):

The Valuation Agent will notify each party by the Notification Time on the Local Business Day following the Resolution Time. Then the appropriate transfer has to be made.

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