Template:Nutshell 2002 ISDA Close-out Amount: Difference between revisions

“'''{{isdaprov|Close-out Amount}}'''” means the {{isdaprov|Expenses}} 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}} 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>

{{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 woiuyld produce an unconscionable result): <br>

:(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>  

(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>