Template:Nutshell 2016 NY CSA 7: Difference between revisions
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===Paragraph {{nyvmcsaprov|7}} '''{{nyvmcsaprov|Events of Default}}'''=== | ===Paragraph {{nyvmcsaprov|7}} '''{{nyvmcsaprov|Events of Default}}'''=== | ||
Under Section {{isdaprov|5(a)(iii)}}(1), | Under Section {{isdaprov|5(a)(iii)}}(1), it will be an {{isdaprov|Event of Default}} for a party if:<br> | ||
:{{nyvmcsaprov|7(i)}} '''Fails to Transfer Collateral''': it (or its {{nyvmcsaprov|Custodian (VM)}}) fails to {{nyvmcsaprov|Transfer}} any {{nyvmcsaprov|Eligible Collateral (VM)}}, {{nyvmcsaprov|Posted Collateral (VM)}} or the {{nyvmcsaprov|Interest Payment (VM)}} when due and that failure continues for two {{nyvmcsaprov|Local Business Day}}s after it receives notice of that failure;<br> | :{{nyvmcsaprov|7(i)}} '''Fails to {{nyvmcsaprov|Transfer}} Collateral''': it (or its {{nyvmcsaprov|Custodian (VM)}}) fails to {{nyvmcsaprov|Transfer}} any {{nyvmcsaprov|Eligible Collateral (VM)}}, {{nyvmcsaprov|Posted Collateral (VM)}} or the {{nyvmcsaprov|Interest Payment (VM)}} when due and that failure continues for two {{nyvmcsaprov|Local Business Day}}s after it receives notice of that failure;<br> | ||
:{{nyvmcsaprov|7(ii)}} '''Impermissible dealing''': it continuously fails to comply with any restriction in this Annex on its rights to [[rehypothecate]] or take title to {{nyvmcsaprov|Posted Collateral}} under Paragraph {{nyvmcsaprov|6(c)}} for five {{nyvmcsaprov|Local Business Day}}s after it receives notice of that failure; or<br> | :{{nyvmcsaprov|7(ii)}} '''Impermissible dealing''': it continuously fails to comply with any restriction in this Annex on its rights to [[rehypothecate]] or take title to {{nyvmcsaprov|Posted Collateral}} under Paragraph {{nyvmcsaprov|6(c)}} for five {{nyvmcsaprov|Local Business Day}}s after it receives notice of that failure; or<br> | ||
:{{nyvmcsaprov|7(iii)}} '''Other breach of Annex''': it continuously breaches any other obligation under this Annex for 30 days after it receives notice of its breach.<br> | :{{nyvmcsaprov|7(iii)}} '''Other breach of Annex''': it continuously breaches any other obligation under this Annex for 30 days after it receives notice of its breach.<br> | ||
Latest revision as of 16:42, 12 January 2022
Paragraph 7 Events of Default
Under Section 5(a)(iii)(1), it will be an Event of Default for a party if:
- 7(i) Fails to Transfer Collateral: it (or its Custodian (VM)) fails to Transfer any Eligible Collateral (VM), Posted Collateral (VM) or the Interest Payment (VM) when due and that failure continues for two Local Business Days after it receives notice of that failure;
- 7(ii) Impermissible dealing: it continuously fails to comply with any restriction in this Annex on its rights to rehypothecate or take title to Posted Collateral under Paragraph 6(c) for five Local Business Days after it receives notice of that failure; or
- 7(iii) Other breach of Annex: it continuously breaches any other obligation under this Annex for 30 days after it receives notice of its breach.