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Template:Nutshell Equity Derivatives 12.6(c): Difference between revisions
Template:Nutshell Equity Derivatives 12.6(c) (view source)
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{{eqderivprov|12.6(c)}} When determining the consequence of any {{eqderivprov|Nationalization}}, {{eqderivprov|Insolvency}} or {{eqderivprov|Delisting}}: <br> | {{eqderivprov|12.6(c)}} When determining the consequence of any {{eqderivprov|Nationalization}}, {{eqderivprov|Insolvency}} or {{eqderivprov|Delisting}}: <br> | ||
:(i) “''' | :(i)if “'''{{eqderivprov|Negotiated Close-out}}'''” applies, then unless the parties agree to terminate the {{eqderivprov|Transaction}} it will continue, but either party may choose to [[Cash Settlement - Equity Derivatives Provision|cash settle]] a {{eqderivprov|Physically-settled}} {{eqderivprov|Transaction}}, and if a {{eqderivprov|Scheduled Valuation Date}} is a {{eqderivprov|Disrupted Day}}, the {{eqderivprov|Calculation Agent}} will ignore Section {{eqderivprov|6.6}} ({{eqderivprov|Disrupted Day}}s) and use its [[good faith]] estimate to determine the {{eqderivprov|Settlement Price}} or {{eqderivprov|Final Price}} as of the {{eqderivprov|Valuation Time}} on that {{eqderivprov|Valuation Date}}; <br> | ||
:(ii) “'''[[Cancellation and Payment (Extraordinary Events) - Equity Derivatives Provision|Cancellation and Payment]]'''” means that the {{eqderivprov|Transaction}} will be cancelled as of the {{eqderivprov|Announcement Date}} and | :(ii) “'''[[Cancellation and Payment (Extraordinary Events) - Equity Derivatives Provision|Cancellation and Payment]]'''” means that the {{eqderivprov|Transaction}} will be cancelled as of the {{eqderivprov|Announcement Date}} and | ||
::(A) For {{eqderivprov|Option Transaction}}s, {{eqderivprov|Seller}} will pay {{eqderivprov|Buyer}} an amount calculated per Section {{eqderivprov|12.7(b)}}; | ::(A) For {{eqderivprov|Option Transaction}}s, {{eqderivprov|Seller}} will pay {{eqderivprov|Buyer}} an amount calculated per Section {{eqderivprov|12.7(b)}}; | ||
::(B) For {{eqderivprov|Forward Transaction}}s or {{eqderivprov|Equity Swap Transaction}}s, one party will pay the other an amount calculated per Section {{eqderivprov|12.7(c)}}; and <br> | ::(B) For {{eqderivprov|Forward Transaction}}s or {{eqderivprov|Equity Swap Transaction}}s, one party will pay the other an amount calculated per Section {{eqderivprov|12.7(c)}}; and <br> | ||
:(iii) “'''[[Partial Cancellation and Payment (Extraordinary Events) - Equity Derivatives Provision|Partial Cancellation and Payment]]'''” means that the portion of a {{eqderivprov|Share Basket Transaction}} representing {{eqderivprov|Affected Shares}} will be cancelled as of the {{eqderivprov|Announcement Date}}, the amount for the {{eqderivprov|Affected Shares}} will be calculated and paid per Section {{eqderivprov|12.7}} and the remainder of the {{eqderivprov|Share Basket Transaction}} will continue with the non-{{eqderivprov|Affected Shares}}, the {{eqderivprov|Calculation Agent}} adjusting any terms as necessary to preserve as far as possible the economic terms for the remaining {{eqderivprov|Share Basket}}. <br> | :(iii) “'''[[Partial Cancellation and Payment (Extraordinary Events) - Equity Derivatives Provision|Partial Cancellation and Payment]]'''” means that the portion of a {{eqderivprov|Share Basket Transaction}} representing {{eqderivprov|Affected Shares}} will be cancelled as of the {{eqderivprov|Announcement Date}}, the amount for the {{eqderivprov|Affected Shares}} will be calculated and paid per Section {{eqderivprov|12.7}} and the remainder of the {{eqderivprov|Share Basket Transaction}} will continue with the non-{{eqderivprov|Affected Shares}}, the {{eqderivprov|Calculation Agent}} adjusting any terms as necessary to preserve as far as possible the economic terms for the remaining {{eqderivprov|Share Basket}}. <br> | ||