Template:Nutshell 2002 ISDA Close-out Amount: Difference between revisions
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“'''{{isdaprov|Close-out Amount}}'''” means the | “'''{{isdaprov|Close-out Amount}}'''” means the losses the {{isdaprov|Determining Party}} would incur (positive) or gains it would realise (negative) in replacing the material terms and the option rights of the parties under a {{isdaprov|Terminated Transaction}}, determined as of the {{isdaprov|Early Termination Date}} (or, if that would not be [[commercially reasonable]], such dates following that date as would be [[commercially reasonable]]) in {{tag|good faith}} and in a {{tag|commercially reasonable}} manner. The {{isdaprov|Determining Party}} may determine {{isdaprov|Close-out Amount}}s for groups of {{isdaprov|Terminated Transactions}} as long as all {{isdaprov|Terminated Transactions}} are accounted for. <br> | ||
The {{isdaprov|Determining Party}} may determine {{isdaprov|Close-out Amount}}s for groups of {{isdaprov|Terminated Transactions}} as long as all {{isdaprov|Terminated Transactions}} are accounted for. <br> | {{isdaprov|Unpaid Amounts}} and {{isdaprov|Expenses}} in respect of {{isdaprov|Terminated Transaction}}s are '''excluded''' from the {{isdaprov|Close-out Amount}} calculation. <br> | ||
The {{isdaprov|Determining Party}} may consider any of the following (unless it thinks they aren’t available or would produce an unconscionable result): <br> | |||
{{isdaprov|Unpaid Amounts}} and {{isdaprov|Expenses}} in respect of {{isdaprov|Terminated Transaction}}s are '''excluded''' from the {{isdaprov|Close-out Amount}} calculation. The {{isdaprov|Determining Party}} may consider any of the following (unless it thinks they | :(i) quotations for replacement transactions that factor in the {{isdaprov|Determining Party}}’s creditworthiness and the ISDA terms between the {{isdaprov|Determining Party}} and the quoting party; <br> | ||
:(i) quotations for replacement transactions that factor in the {{isdaprov|Determining Party}} | :(ii) third party market data; or <br> | ||
(ii) third party market data; or <br> | :(iii) internal quotes or market data if used by the {{isdaprov|Determining Party}} in the regular course to value similar transactions. <br> | ||
(iii) internal quotes or market data if used by the {{isdaprov|Determining Party}} in the regular course to value similar transactions. <br> | |||
Latest revision as of 13:16, 3 November 2021
“Close-out Amount” means the losses the Determining Party would incur (positive) or gains it would realise (negative) in replacing the material terms and the option rights of the parties under a Terminated Transaction, determined as of the Early Termination Date (or, if that would not be commercially reasonable, such dates following that date as would be commercially reasonable) in good faith and in a commercially reasonable manner. The Determining Party may determine Close-out Amounts for groups of Terminated Transactions as long as all Terminated Transactions are accounted for.
Unpaid Amounts and Expenses in respect of Terminated Transactions are excluded from the Close-out Amount calculation.
The Determining Party may consider any of the following (unless it thinks they aren’t available or would produce an unconscionable result):
- (i) quotations for replacement transactions that factor in the Determining Party’s creditworthiness and the ISDA terms between the Determining Party and the quoting party;
- (ii) third party market data; or
- (iii) internal quotes or market data if used by the Determining Party in the regular course to value similar transactions.