Template:Nutshell 2002 ISDA 9(h)(i): Difference between revisions

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{{isdaprov|9(h)(i)}}  '''{{isdaprov|Prior to Early Termination}}'''. Prior to the occurrence or effective designation of an {{isdaprov|Early Termination Date}} in respect of the relevant {{isdaprov|Transaction}}:― <br>
{{isdaprov|9(h)(i)}}  '''{{isdaprov|Prior to Early Termination}}'''. Before an {{isdaprov|Early Termination Date}} is designated for the relevant {{isdaprov|Transaction}}:― <br>
:(1) '''Interest on Defaulted Payments'''. If a party defaults in the performance of any payment obligation, it will, to the extent permitted by applicable law and subject to Section {{isdaprov|6(c)}}, pay interest (before as well as after judgment) on the overdue amount to the other party on demand in the same currency as the overdue amount, for the period from (and including) the original due date for payment to (but excluding) the date of actual payment (and excluding any period in respect of which interest or compensation in respect of the overdue amount is due pursuant to clause (3)(B) or (C) below), at the {{isdaprov|Default Rate}}. <br>
:(1) '''{{isdaprov|Interest on Defaulted Payments}}'''. If a party defaults on any payment obligation, it will pay interest on the overdue amount from the original due date to the actual payment date (excluding any relevant {{isdaprov|Waiting Period}}), at the {{isdaprov|Default Rate}}. <br>
:(2) '''Compensation for Defaulted Deliveries'''. If a party defaults in the performance of any obligation required to be settled by delivery, it will on demand (A) compensate the other party to the extent provided for in the relevant {{isdaprov|Confirmation}} or elsewhere in this {{isdaprov|Agreement}} and (B) unless otherwise provided in the relevant {{isdaprov|Confirmation}} or elsewhere in this {{isdaprov|Agreement}}, to the extent permitted by applicable law and subject to Section {{isdaprov|6(c)}}, pay to the other party interest (before as well as after judgment) on an amount equal to the fair market value of that which was required to be delivered in the same currency as that amount, for the period from (and including) the originally scheduled date for delivery to (but excluding) the date of actual delivery (and excluding any period in respect of which interest or compensation in respect of that amount is due pursuant to clause (4) below), at the {{isdaprov|Default Rate}}. The fair market value of any obligation referred to above will be determined as of the originally scheduled date for delivery, in good faith and using commercially reasonable procedures, by the party that was entitled to take delivery. <br>
:(2) '''{{isdaprov|Compensation for Defaulted Deliveries}}'''. If a party defaults on any delivery obligation, it will, on demand:
:(3) '''Interest on Deferred Payments'''. If:― <br>
::(A) compensate the other party per the relevant {{isdaprov|Confirmation}}; and  
::(A) a party does not pay any amount that, but for Section {{isdaprov|2(a)(iii)}}, would have been payable, it will, to the extent permitted by applicable law and subject to Section 6(c) and clauses (B) and (C) below, pay interest (before as well as after judgment) on that amount to the other party on demand (after such amount becomes payable) in the same currency as that amount, for the period from (and including) the date the amount would, but for Section {{isdaprov|2(a)(iii)}}, have been payable to (but excluding) the date the amount actually becomes payable, at the {{isdaprov|Applicable Deferral Rate}}; <br>
::(B) pay interest on the fair market value of the delivery obligation from the original due date to the actual delivery date (excluding any period to which clause (4) below applies), at the {{isdaprov|Default Rate}}. The innocent party will determine the fair market value as of the scheduled delivery date [[in good faith]] and a [[commercially reasonable manner]]. <br>
::(B) a payment is deferred pursuant to Section {{isdaprov|5(d)}}, the party which would otherwise have been required to make that payment will, to the extent permitted by applicable law, subject to Section {{isdaprov|6(c)}} and for so long as no {{isdaprov|Event of Default}} or {{isdaprov|Potential Event of Default}} with respect to that party has occurred and is continuing, pay interest (before as well as after judgment) on the amount of the deferred payment to the other party on demand (after such amount becomes payable) in the same currency as the deferred payment, for the period from (and including) the date the amount would, but for Section {{isdaprov|5(d)}}, have been payable to (but excluding) the earlier of the date the payment is no longer deferred pursuant to Section {{isdaprov|5(d)}} and the date during the deferral period upon which an {{isdaprov|Event of Default}} or {{isdaprov|Potential Event of Default}} with respect to that party occurs, at the {{isdaprov|Applicable Deferral Rate}}; or <br>
:(3) '''{{isdaprov|Interest on Deferred Payments}}'''. If:― <br>
::(C) a party fails to make any payment due to the occurrence of an {{isdaprov|Illegality}} or a Force Majeure Event (after giving effect to any deferral period contemplated by clause (B) above), it will, to the extent permitted by applicable law, subject to Section {{isdaprov|6(c)}} and for so long as the event or circumstance giving rise to that {{isdaprov|Illegality}} or {{isdaprov|Force Majeure Event}} continues and no {{isdaprov|Event of Default}} or {{isdaprov|Potential Event of Default}} with respect to that party has occurred and is continuing, pay interest (before as well as after judgment) on the overdue amount to the other party on demand in the same currency as the overdue amount, for the period from (and including) the date the party fails to make the payment due to the occurrence of the relevant {{isdaprov|Illegality}} or {{isdaprov|Force Majeure Event}} (or, if later, the date the payment is no longer deferred pursuant to Section 5(d)) to (but excluding) the earlier of the date the event or circumstance giving rise to that {{isdaprov|Illegality}} or {{isdaprov|Force Majeure Event}} ceases to exist and the date during the period upon which an {{isdaprov|Event of Default}} or {{isdaprov|Potential Event of Default}} with respect to that party occurs (and excluding any period in respect of which interest or compensation in respect of the overdue amount is due pursuant to clause (B) above), at the {{isdaprov|Applicable Deferral Rate}}. <br>  
::(A) a party does not pay an amount that, but for Section {{isdaprov|2(a)(iii)}}, would have been payable, it will, subject to (B) and (C) below, pay interest on demand from the date the amount would otherwise have been payable to the date it actually becomes payable, at the {{isdaprov|Applicable Deferral Rate}}; <br>
:(4) '''Compensation for Deferred Deliveries'''. If:― <br>
::(B) a payment is deferred under Section {{isdaprov|5(d)}}, the party which would otherwise have been required to make it will (as long as no {{isdaprov|Event of Default}} or {{isdaprov|Potential Event of Default}} exists, pay interest on demand from the original due date to the earlier of the date it is no longer deferred and the date on which the {{isdaprov|Event of Default}} or {{isdaprov|Potential Event of Default}} occurs, at the {{isdaprov|Applicable Deferral Rate}}; or <br>
::(A) a party does not perform any obligation that, but for Section {{isdaprov|2(a)(iii)}}, would have been required to be settled by delivery; <br>
::(C) a party fails (after giving effect to any deferral period set out in (B) above) to make any payment because of an {{isdaprov|Illegality}} or a {{isdaprov|Force Majeure Event}} it will, as long as the {{isdaprov|Illegality}} or {{isdaprov|Force Majeure Event}} continues and no {{isdaprov|Event of Default}} or {{isdaprov|Potential Event of Default}} exists, pay interest on demand from the date the party failed to make the payment (or, if later, the date the payment is no longer deferred) to the earlier of the date on which the {{isdaprov|Illegality}} or {{isdaprov|Force Majeure Event}} ceases and the date on which an {{isdaprov|Event of Default}} or {{isdaprov|Potential Event of Default}} occurs to that party (excluding any period in which compensation is due under clause (B) above), at the {{isdaprov|Applicable Deferral Rate}}. <br>  
::(B) a delivery is deferred pursuant to Section {{isdaprov|5(d)}}; or <br>
:(4) '''{{isdaprov|Compensation for Deferred Deliveries}}'''. If:― <br>
::(C) a party fails to make a delivery due to the occurrence of an {{isdaprov|Illegality}} or a Force Majeure Event at a time when any applicable {{isdaprov|Waiting Period}} has expired, <br>
::(A) a party does not settle any delivery that, but for Section {{isdaprov|2(a)(iii)}}, it would have been required to make; or <br>
:the party required (or that would otherwise have been required) to make the delivery will, to the extent permitted by applicable law and subject to Section {{isdaprov|6(c)}}, compensate and pay interest to the other party on demand (after, in the case of clauses (A) and (B) above, such delivery is required) if and to the extent provided for in the relevant {{isdaprov|Confirmation}} or elsewhere in this {{isdaprov|Agreement}}.
::(B) a delivery is deferred under Section {{isdaprov|5(d)}}; or <br>
::(C) a party fails to deliver because of an {{isdaprov|Illegality}} or {{isdaprov|Force Majeure Event}} when any applicable {{isdaprov|Waiting Period}} has expired, <br>
:that party will compensate and pay interest to the other party on demand (after such delivery becomes required) as required the relevant {{isdaprov|Confirmation}}. <br>

Latest revision as of 14:21, 30 July 2019

9(h)(i) Prior to Early Termination. Before an Early Termination Date is designated for the relevant Transaction:―

(1) Interest on Defaulted Payments. If a party defaults on any payment obligation, it will pay interest on the overdue amount from the original due date to the actual payment date (excluding any relevant Waiting Period), at the Default Rate.
(2) Compensation for Defaulted Deliveries. If a party defaults on any delivery obligation, it will, on demand:
(A) compensate the other party per the relevant Confirmation; and
(B) pay interest on the fair market value of the delivery obligation from the original due date to the actual delivery date (excluding any period to which clause (4) below applies), at the Default Rate. The innocent party will determine the fair market value as of the scheduled delivery date in good faith and a commercially reasonable manner.
(3) Interest on Deferred Payments. If:―
(A) a party does not pay an amount that, but for Section 2(a)(iii), would have been payable, it will, subject to (B) and (C) below, pay interest on demand from the date the amount would otherwise have been payable to the date it actually becomes payable, at the Applicable Deferral Rate;
(B) a payment is deferred under Section 5(d), the party which would otherwise have been required to make it will (as long as no Event of Default or Potential Event of Default exists, pay interest on demand from the original due date to the earlier of the date it is no longer deferred and the date on which the Event of Default or Potential Event of Default occurs, at the Applicable Deferral Rate; or
(C) a party fails (after giving effect to any deferral period set out in (B) above) to make any payment because of an Illegality or a Force Majeure Event it will, as long as the Illegality or Force Majeure Event continues and no Event of Default or Potential Event of Default exists, pay interest on demand from the date the party failed to make the payment (or, if later, the date the payment is no longer deferred) to the earlier of the date on which the Illegality or Force Majeure Event ceases and the date on which an Event of Default or Potential Event of Default occurs to that party (excluding any period in which compensation is due under clause (B) above), at the Applicable Deferral Rate.
(4) Compensation for Deferred Deliveries. If:―
(A) a party does not settle any delivery that, but for Section 2(a)(iii), it would have been required to make; or
(B) a delivery is deferred under Section 5(d); or
(C) a party fails to deliver because of an Illegality or Force Majeure Event when any applicable Waiting Period has expired,
that party will compensate and pay interest to the other party on demand (after such delivery becomes required) as required the relevant Confirmation.
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