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Template:Nutshell 2002 ISDA 6(e)(ii): Difference between revisions
Template:Nutshell 2002 ISDA 6(e)(ii) (view source)
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Amwelladmin (talk | contribs) (Created page with ":{{isdaprov|6(e)(ii)}} '''{{isdaprov|Termination Events}}'''. If the {{isdaprov|Early Termination Date}} results from a {{isdaprov|Termination Event}}:― ::(1) '''One {{isd...") |
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:{{isdaprov|6(e)(ii)}} '''{{isdaprov|Termination Events}}'''. If the {{isdaprov|Early Termination Date}} results from a {{isdaprov|Termination Event}}:― | :{{isdaprov|6(e)(ii)}} '''{{isdaprov|Termination Events}}'''. If the {{isdaprov|Early Termination Date}} results from a {{isdaprov|Termination Event}}:― | ||
::(1) '''One {{isdaprov|Affected Party}}'''. | ::(1) '''One {{isdaprov|Affected Party}}'''. If there is '''one''' {{isdaprov|Affected Party}}, the {{isdaprov|Early Termination Amount}} will be determined the same was as for {{isdaprov|Events of Default}} under Section {{isdaprov|6(e)(i)}} [[mutatis mutandis]]. | ||
::(2) '''Two {{isdaprov|Affected Parties}}'''. | ::(2) '''Two {{isdaprov|Affected Parties}}'''. If there are '''two''' {{isdaprov|Affected Parties}}, each party will determine the {{isdaprov|Termination Currency Equivalent}} of the total the {{isdaprov|Close-out Amounts}} for each {{isdaprov|Terminated Transaction}} and the {{isdaprov|Early Termination Amount}} will be: <br> | ||
:::(A) the sum of <br> | :::(A) the sum of <br> | ||
::::(I) half of the difference between the higher amount (determined by party “'''X'''”) and the lower amount (determined by party “'''Y'''”) and <br> | ::::(I) half of the difference between the higher amount (determined by party “'''X'''”) and the lower amount (determined by party “'''Y'''”) and <br> | ||
::::(II) the {{isdaprov|Termination Currency Equivalent}} of the {{isdaprov|Unpaid Amounts}} owing to X | ::::(II) the {{isdaprov|Termination Currency Equivalent}} of the {{isdaprov|Unpaid Amounts}} owing to X '''minus''' <br> | ||
:::(B) the {{isdaprov|Termination Currency Equivalent}} of the {{isdaprov|Unpaid Amounts}} owing to Y. | :::(B) the {{isdaprov|Termination Currency Equivalent}} of the {{isdaprov|Unpaid Amounts}} owing to Y. | ||
::If the {{isdaprov|Early Termination Amount}} is a positive number, Y will pay it to X; if negative , X will pay its absolute value to Y. | ::If the {{isdaprov|Early Termination Amount}} is a positive number, Y will pay it to X; if negative , X will pay its absolute value to Y. | ||
::(3) '''{{isdaprov|Mid-Market Events}}'''. In the | ::(3) '''{{isdaprov|Mid-Market Events}}'''. In either case where the Termination Event is an {{isdaprov|Illegality}} or a {{isdaprov|Force Majeure Event}}, when determining a {{isdaprov|Close-out Amount}} the {{isdaprov|Determining Party}} will use [[mid-market quotation|mid-market quotations]] or values that do not take into account the {{isdaprov|Determining Party}}’s own creditworthiness. <br> | ||